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The  Hart  Schaffher  &  Marx 
Labor  Agreement 


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The  Hart  Schaffner  &  Marx 
Labor  Agreement 


Being  a  Compilation  and  Codification  of  the  Agreements 

of  1911,  1913  and  1916  and  decisions  rendered 

by  the  Board  of  Arbitration 


By 
J.  E.  Williams 

Chairman  of  Board  of  Arbitration 

Sidney  Hillman 

President  Amalgamated  Clothing  Workers  of  America, 
formerly  chief  deputy  for  the  union 

Earl  Dean  Howard 

Director  of  Labor  for  Hart  Schaffner  &  Marx 


CHICAGO 

1916 


n 


/-' 


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ADMINISTRATIVE  ORGANIZATION  OF 

THE  HART  SCHAFFNER  &  MARX 

LABOR  AGREEMENT 


BOARD  OF  ARBITRATION 

J.  E.  Williams,  Chairman 

William  O.  Thompson,  for  the  A.  C.  W.  A. 

Carl  Meyer,  for  H.  S.  &  M. 

TRADE  BOARD 

James  Mullenbach,  Chairman 

FOR  THE  amalgamated  CLOTHING  WORKERS  OF  AMERICA 

Joseph  Kaminisky  Morris  Spitzer 

Samuel  Diamond  Samuel  Albert 

Robert  Cunat  Hyman  Isovitz 

for  hart  schaffner  &  marx 

Albert  Kirch  Louis  Kovell    - 

Adolph  Larson 


DEPUTIES 

for  hart  schaffner  &  marx 
Earl  Dean  Howard  Gilbert  L.  Campbell 

FOR  THE  amalgamated  CLOTHIJsTG  WORKERS  OF  AMERICA 

Samuel  Levin,  Local  39  Edward  Anderson,  Local  61 

Joseph  Glickman,  Local  152  John  Katilius,  Local  269 


PIECE  RATE  COMMITTEE 

James  Mullenbach,  Chairman 
Gilbert  L.  Campbell  A.  D.  Marimpietri 


380526 


CONTENTS 

I.      Administrative  Organization  of  the  Hart  Schaffner  Si.  Marx 
Labor  Agreement. 

II.      Preamble  to  the  Agreement  by  Mr.  J.  E.  Williams, 

chairman  of  Board  of  Arbitration  .  .  Page    1 

III.  Text  of  the  Hart  Schaffner  &  Marx  Labor  Agree- 

ment with  the  Amalgamated  Clothing  Workers 

of  America        ......  Page    2 

IV.  The  Experience  of  Hart  Schaffner  &  Marx  with 

Collective  Bargaining.      (April,  1914)  .  Page  22 

V.     The  Development  of  Government  in  Industry,  by 

Earl  Dean  Howard  ....  Page  29 

VI.      A  New  Field  for  Systematic  Justice,  by  Dean  John 

Wigmore  ......  Page  37 

VII.      Making  Piece-Work  Rates  under  Hart  SchaflFner 

&  Marx  Agreement  .  .  .  .  Page  40 

VIII.     Statement  of  Mr.  Sidney  Hillman,  April  26,  1916. 

(Fac-simile  letter)       .....  Page  42 


The  Hart  Schaffner  &  Marx 
Labor  Agreement 


Preamble 

By  Mr.  J.  E.  Williams, 
Chairman  of  The  Board  of  Arbitration 

The  parties  whose  names  are  signed  hereto  purpose  entering 
into  an  agreement  for  collective  bargaining  with  the  intention  of 
agreeing  on  wage  and  working  conditions  and  to  provide  a  method 
for  adjusting  any  differences  that  may  arise  during  the  term  of  this 
contract. 

In  order  that  those  who  have  to  interpret  this  instrument  may 
have  some  guide  as  to  the  intentions  and  expectations  of  the  parties 
when  entering  into  this  compact,  they  herewith  make  record  of  their 
spirit  and  purpose,  their  hope  and  expectations,  so  far  as  they  are 
now  able  to  forecast  or  state  them. 

On  the  part  of  the  employer  it  is  the  intention  and  expectation 
that  this  compact  of  peace  will  result  in  the  establishment  and  main- 
tenance of  a  high  order  of  discipline  and  efficiency  by  the  willing 
co-operation  of  union  and  workers  rather  than  by  the  old  method  of 
surveillance  and  coercion ;  that  by  the  exercise  of  this  discipline  all 
stoppages  and  interruptions  of  work,  and  all  wilful  violations  of 
rules  will  cease ;  that  good  standards  of  workmanship  and  conduct 
will  be  maintained  and  a  proper  quantity,  quality  and  cost  of  pro- 
duction will  be  assured ;  and  that  out  of  its  operation  will  issue  such 
co-operation  and  good  will  between  employers,  foremen,  union  and 
workers  as  will  prevent  misunderstanding  and  friction  and  make 
for  good  team  work,  good  business,  mutual  advantage  and  mutual 
respect. 

On  the  part  of  the  union  it  is  the  intention  and  expectation 
that  this  compact  will,  with  the  co-operation  of  the  employer,  operate 
in  such  a  way  as  to  maintain,  strengthen,  and  solidify  its  organiza- 
tion, so  that  it  may  be  made  strong  enough,  and  efficient  enough,  to 


THE  HART  SCHAFFNER  &  A4ARX 


co-operate  as  contemplated  in  the  preceding  paragraph ;  and  also  that 
it  may  be  strong  enough  to  command  the  respect  of  the  employer 
without  being  forced  to  resort  to  militant  or  unfriendly  measures. 

On  the  part  of  the  workers  it  is  the  intention  and  expectation 
that  they  pass  from  the  status  of  wage  servants,  with  no  claim  on 
the  employer  save  his  economic  need,  to  that  of  self-respecting  parties 
to  an  agreement  which  they  have  had  an  equal  part  with  him  in 
making;  that  this  status  gives  them  an  assurance  of  fair  and  just 
treatment  and  protects  them  against  injustice  or  oppression  of  those 
who  may  have  been  placed  in  authority  over  them;  that  they  will 
have  recourse  to  a  court,  in  the  creation  of  which  their  votes  were 
equally  potent  with  that  of  the  employer,  in  which  all  their  grievances 
may  be  heard,  and  all  their  claims  adjudicated;  that  all  changes 
during  the  life  of  the  pact  shall  be  subject  to  the  approval  of  an  im- 
partial tribunal,  and  that  wages  and  working  conditions  shall  not 
fall  below  the  level  provided  for  in  the  agreement. 

The  parties  to  this  pact  realize  that  the  interests  sought  to  be 
reconciled  herein  will  tend  to  pull  apart,  but  they  enter  it  in  the 
faith  that  by  the  exercise  of  the  co-operative  and  constructive  spirit 
it  will  be  possible  to  bring  and  keep  them  together.  This  will  involve 
as  an  indispensable  pre-requisite  the  total  suppression  of  the  militant 
spirit  by  both  parties  and  the  development  of  reason  instead  of  forct 
as  the  rule  of  action.  It  will  require  also  mutual  consideration  and 
concession,  a  willingness  on  the  part  of  each  party  to  regard  and  serve 
the  interests  of  the  other,  so  far  as  it  can  be  done  without  too  great 
a  sacrifice  of  principle  or  interest.  With  this  attitude  assured  it  is 
believed  no  differences  can  arise  which  the  joint  tribunal  cannot 
mediate  and  resolve  in  the  interest  of  co-operation  and  harmony. 

SECTION  I 

Administration 

This  agreement  is  entered  into  between  Hart  Schaffner  &  Marx, 
a  corporation,  and  the  Amalgamated  Clothing  Workers  of  America, 
and  is  effective  from  May  1st,  1916  to  April  30th,  1919. 

Officers  of  the  Agreement 

The  administration  of  this  agreement  is  vested  in  a  Board  of 
Arbitration  and  a  Trade  Board,  together  with  such  deputies,  officials 


LABOR  AGREEMENT 


and  representatives  of  the  parties  hereto  as  are  now  or  hereafter  may 
be  appointed  for  that  purpose,  whose  duties  and  powers  are  herein- 
after described. 

Board  of  Arbitration 

The  Board  of  Arbitration  shall  have  full  and  final  jurisdiction 
over  all  matters  arising  under  this  agreement  and  its  decisions  there- 
upon shall  be  conclusive. 

It  shall  consist  of  three  members,  one  of  whom  shall  be  chosen 
by  the  union,  one  by  the  company,  and  the  third  shall  be  the  mutual 
choice  of  both  parties  hereto  and  shall  be  the  chairman  of  the  Board. 
It  is  agreed  that  the  board  as  constituted  under  the  old  agreement 
shall  be  continued  during  the  present  agreement,  William  O.  Thomp- 
son being  the  choice  of  the  union,  Carl  Meyer,  the  choice  of  the 
company  and  J.  E.  Williams,  chairman,  being  chosen  by  agreement 
of  both  parties. 

It  shall  be  the  duty  of  the  Board  to  investigate,  and  to  mediate 
or  adjudicate  all  matters  that  are  brought  before  it  and  to  do  all  in  its 
power  to  insure  the  successful  working  of  the  agreement.  In  reach- 
ing its  decisions  the  Board  is  expected  to  have  regard  to  the  general 
principles  of  the  agreement;  the  spirit  and  intent,  expressed  or  im- 
plied, of  the  parties  thereto;  and,  especially,  the  necessity  of  making 
the  instrument  workable,  and  adaptable  to  varying  needs  and  condi- 
tions, while  conserving  as  fully  as  possible  the  essential  interests  of  the 
parties  involved. 

The  line  of  practice  already  developed  by  the  Board  shall  be 
continued.  This  contemplates  that  questions  of  fact  and  testimony 
shall  in  the  main  be  considered  by  the  Trade  Board  while  the  Board 
of  Arbitration  will  concern  itself  mainly  with  questions  of  principle 
and  the  application  of  the  agreement  to  new  issues  as  they  arise. 
But  this  is  not  to  be  construed  as  limiting  the  power  of  the  Board, 
which  is  broad  enough  to  make  it  the  judge  of  facts  as  well  as  prin- 
ciple when  necessary,  and  to  deal  with  any  question  that  may  arise 
whose  disposition  is  essential  to  the  successful  working  of  the  agree- 
ment. 

By  agreement  between  the  chief  deputies,  cases  may  be  heard  and 
decided  by  the  chairman  of  the  Board  alone. 


THE  HART  SCHAFFNER  &  MARX 


Emergency  Powers 

If  there  shall  be  a  general  change  in  wages  or  hours  in  the 
clothing  industry,  which  shall  be  sufficiently  permanent  to  warrant 
the  belief  that  the  change  is  not  temporary,  then  the  Board  shall 
have  power  to  determine  whether  such  change  is  of  so  extraordinary 
a  nature  as  to  justify  a  consideration  of  the  question  of  making  a 
change  in  the  present  agreement,  and,  if  so,  then  the  Board  shall  have 
power  to  make  such  changes  in  wages  or  hours  as  in  its  judgment  shall 
be  proper. 

Trade  Board 

The  Trade  Board  is  the  primary  board  for  adjusting  grievances^ 
and  shall  have  original  jurisdiction  over  all  matters  arising  under 
this  agreement  and  the  decisions  relating  thereto,  and  shall  consider 
and  dispose  of  all  such  matters  when  regularly  brought  before  it, 
subject  to  such  rules  of  practice  and  procedure  as  are  now  or  may 
be  hereafter  established. 

The  Board  shall  consist  of  eleven  members,  all  of  whom  except- 
ing the  chairman,  shall  be  employes  of  Hart  Schaffner  &  Marx. 
Five  members  shall  be  chosen  by  the  company,  and  five  by  the  union, 
and  it  is  understood  that  these  shall  be  selected  in  such  manner  as 
to  be  representative  of  the  various  departments — cutting  and  trim- 
ming, coat,  vest  and  trousers. 

The  Board  shall  be  presided  over  by  a  chairman  who  shall  rep- 
resent the  mutual  interests  of  both  parties  hereto,  and  especially  the 
interest  of  the  successful  working  of  this  agreement.  He  shall  pre- 
side at  meetings  of  the  Board,  assist  in  investigation  of  complaints, 
endeavor  to  mediate  conflicting  interests,  and,  in  case  of  disagree- 
ment, shall  cast  the  deciding  vote  on  questions  before  the  Board. 
He  shall  also  act  as  umpire  on  the  cutting  room  commission,  and 
perform  such  other  duties  as  may  be  required  of  him  by  the  agree- 
ment or  by  the  Board  of  Arbitration. 

The  chairman  shall  hold  office  during  the  term  of  the  agree- 
ment, and  in  case  of  death,  resignation,  or  inability  to  act,  the  vacancy 
shall  be  filled  by  the  Board  of  Arbitration. 

It  is  especially  agreed  that  James  MuUenbach,  chairman  under 
the  former  agreement,  shall  be  retained  under  the  present  agreement. 

Meetings  of   the  Board   shall  be  held   whenever  necessary   at 


LABOR  AGREEMENT 


such  times  as  the  chairman  shall  direct.  Whenever  an  authorized 
representative  of  both  parties  is  present,  it  shall  be  considered  a 
quorum.  Each  part}'  is  privileged  to  substitute  an  alternate  in  place 
of  the  regular  member  whenever  they  so  desire.  Should  either  side, 
after  reasonable  notice,  fail  to  send  a  representative  to  sit  on  the 
Trade  Board,  then  the  chairman  may  proceed  the  same  as  if  both 
parties  were  present. 

Members  of  the  Board  shall  be  certified  in  writing  to  the  chair- 
man by  the  Joint  Board  of  Hart  Schaffner  &  Marx,  and  the  proper 
official  of  the  company  and  any  member,  other  than  the  chairman, 
may  be  removed  and  replaced  by  the  power  appointing  him. 

Deputies 

The  deputies  are  the  officers  having  direct  charge  of  the  execu- 
tion of  the  provisioins  of  this  agreement  in  the  interest  of  their  re- 
spective principals.  Each  of  the  parties  hereto  shall  have  a  sufficient 
number  of  deputies  to  properly  take  care  of  the  work  necessary  to 
be  done  to  keep  the  docket  from  being  clogged  with  complaints,  and 
to  insure  an  efficient  working  of  the  agreement.  They  shall  have 
power  to  investigate,  mediate,  and  adjust  complaints,  and  settlements 
made  by  the  deputies  of  the  parties  in  dispute  shall  be  legally  binding 
on  their  principals.  In  case  of  appeal  to  the  Trade  Board  or  Board 
of  Arbitration  the  deputies  may  represent  their  respective  principals 
before  these  Boards,  and  shall  have  power  to  summon  and  examine 
witnesses,  to  present  testimony  or  evidence,  and  do  such  other  thmgs 
as  may  be  necessary  to  place  their  case  properly  before  the  trial  body, 
and  such  body  shall  see  to  it  that  they  be  given  adequate  opportunity 
and  facility  for  such  presentation,  subject  to  the  usual  rules  of  pro- 
cedure. 

One  of  the  deputies  on  each  side  shall  be  known  as  the  chief 
deputy,  and  the  statement  of  the  chief  deputy  shall  be  regarded  as 
an  authoritative  presentation  of  the  position  of  his  principal  in  any 
matter  in  controversy.  Unless  reversed  or  modified  by  either  of  the 
Trial  Boards  the  agreement  of  the  chief  deputies  in  all  matters  over 
which  they  or  their  principals  have  authority  shall  be  observed  by 
all  parties. 

The  union  deputy  shall  have  access  to  any  shop  or  factory  for  the 
purpose  of  making  investigations  of  complaints;  but  he  shall  m  all 


THE  HART  SCHAFFNER  &  MARX 


cases  be  accompanied  by  the  representative  of  the  employer.  Provided, 
that  the  latter  may  at  his  option  waive  his  right  to  accompany  him, 
also  that  in  minor  matters  where  convenience  or  expedition  may  be 
served  the  union  deputy  may  call  out  the  shop  chairman  to  obtain 
information  without  such  waiver. 

The  deputies  shall  be  available  to  give  their  duties  prompt  and 
adequate  attention,  and  shall  be  subject  to  the  direction  of  the  Trade 
Board  in  all  matters  relating  to  the  administration  of  this  agreement. 

Qualifications  of  Deputies 

Each  deputy,  in  order  to  qualify  for  duty,  must  have  a  commis- 
sion signed  by  the  proper  official  representing  the  union  or  the 
company,  and  said  commission  must  be  countersigned  by  the  chairman 
of  the  Trade  Board.  Deputies  must  be  either  employes  of  Hart 
Schaffner  &  Marx,  or  must  be  persons  who  are  connected  with  the 
Joint  Board  of  Hart  Schaffner  &  Marx. 

Shop  Representative 

The  union  shall  have  in  each  shop  a  duly  accredited  representa- 
tive authorized  by  the  Joint  Board  who  shall  be  recognized  as  the 
officer  of  the  union  having  charge  of  complaints  and  organization 
matters  within  the  shop.  He  shall  be  empowered  to  receive  com- 
plaints and  be  given  sufficient  opportunity  and  range  of  action  to 
enable  him  to  make  proper  inquiry  concerning  them.  When  nec- 
essary for  the  shop  representative  to  leave  his  place  to  investigate 
complaints  the  foreman  may,  if  he  deems  it  necessary,  ask  to  be 
informed  of  the  purpose  of  his  movements,  and  the  representative 
shall  comply  with  his  request. 

It  is  understood  the  shop  representative  shall  be  entitled  to 
collect  dues  and  perform  such  other  duties  as  may  be  imposed  on 
him  by  the  union,  provided  they  be  performed  in  such  manner  as 
not  to  interefere  with  shop  discipline  and  efficiency. 

It  is  expected  that  he  will  represent  the  co-operative  spirit  of 
the  agreement  in  the  shop,  and  shall  be  the  leader  in  promoting 
that  amity  and  spirit  of  good  will  which  it  is  the  purpose  of  this 
instrument  to  establish. 

The  co-operative  spirit  enjoined  on  the  shop  representative  in 
the    foregoing   paragraph   shall    be   expected    in    equal    degree    from 


LABOR  AGREEMENT 


the   shop   superintendent,   who   shall   be   expected   to   contribute   his 
best  efforts  to  promote  harmony  and  good  will  in  the  shops. 

SECTION  II 

Procedure 

When  Grievances  Arise 

When  a  grievance  arises  on  the  floor  of  the  shop,  the  com- 
plainant shall  report  it  with  reasonable  promptness  to  the  shop 
representative,  who  shall  present  it  without  undue  delay  to  the 
shop  superintendent.  These  two  may  discuss  the  complaint  in  a 
judicial  temper,  and  may  endeavor  to  agree  to  an  adjustment.  It 
is  understood,  however,  that  they  are  not  a  trial  board,  and  it  is 
not  expected  that  they  shall  argue  or  dispute  over  the  case.  In 
the  event  that  the  shop  representative  is  not  satisfied  with  the  action 
of  the  superintendent,  he  may  promptly  report  the  matter  to  his 
deputy,  with  such  information  as  will  enable  him  to  deal  advisedly 
with  the  case. 

Failure  to  comply  with  these  provisions  for  the  regulation  of 
shop  transactions  shall  subject  the  offender  to  discipline  by  the 
Trade  Board. 

Informal  oral  adjustments  made  by  shop  officials  are  subject  to 
revision  by  the  Trade  Board,  and  are  not  binding  on  their  principals 
unless  ratified  by  the  chief  deputies. 

Adjustment  by  Deputies 

When  the  shop  officers  report  a  disputed  complaint  to  their 
respective  deputies,  they  shall  give  it  such  investigation  as  its  nature 
or  importance  demands,  either  by  visitation  to  the  shop  or  by  the 
taking  of  testimony,  and  shall  make  an  earnest  endeavor  to  reach  a 
settlement  that  will  be  just  and  satisfactory  to  all  the  parties  in 
dispute. 

Disagreement  by  Deputies 

In  the  event  of  a  failure  to  agree  on  an  adjustment,  the  deputies 
shall  certify  the  case  for  trial  to  the  Trade  Board,  agreeing  on  a 
written  statement  of  facts  if  possible.  In  certifying  such  disagree- 
ment the  deputy  appealing  to  the  Board  shall  file  a  statement  stating 


THE  HART  SCHAFFNER  &  MARX 


specifically  the  nature  of  the  complaint  alleged  with  the  Trade 
Board,  and  shall  furnish  a  copy  to  the  representative  of  the  dissent- 
ing party  who  shall  have,  at  least,  twenty-four  hours  to  prepare  his 
answer,  unless  otherwise  agreed  on ;  provided,  that  by  direction  .of 
the  chairman  of  the  Trade  Board  emergency  cases  may  be  brought 
to  trial  at  once.  Where  no  statement  has  been  filed  in  writing 
within  a  reasonable  time  after  disagreement  of  the  deputies,  it  may  be 
assumed  that  the  disagreehient  no  longer  exists,  and  the  case  may  be 
considered  settled. 

Docket  and  Records 

The  chairman  of  the  Trade  Board  shall  keep  a  docket  in  which 
all  cases  shall  be  entered  in  the  order  of  their  arising.  Unless 
otherwise  directed  by  the  chairman,  cases  shall  be  heard  in  the  order 
of  their  filing.  Duplicate  records  shall  be  made  by  the  Board,  one 
copy  of  which  shall  be  retained  by  the  Chairman,  and  one  given 
to  the  chief  deputy  for  the  union.  Such  records  shall  contain  all 
complaints  filed  with  the  Board;  orders  or  decisions  of  the  Board, 
or  of  the  deputies  or  of  any  committee ;  calendars  of  pending  cases, 
and  such  other  matter  as  the  Trade  Board  may  order  placed  upon  the 
records. 

Direct  Complaints 

Complaints  may  be  made  directly  by  either  party,  without  the 
intervention  of  a  shop  representative,  whenever  it  desires  to  avail 
itself  of  the  protection  of  the  agreement;  but  a  statement  of  the 
facts  and  grounds  of  such  complaints  must  be  filed  in  writing  as 
hereinbefore  provided.  Unless  written  notice  has  been  filed,  it  may 
be  presumed,  officially,  that  no  complaint  exists. 

Decisions,  Appeals,  Etc. 

All  decisions  of  the  Trade  Board  shall  be  in  writing,  and  copies 
given  to  the  representatives  of  each  party.  Should  either  party  desire 
to  appeal  from  the  decision,  it  shall  file  with  the  Board  a  notice  of 
its  intention  so  to  do  within  ten  days  of  the  date  of  the  decision. 
Or  if  either  party  desires  an  amendment  or  modification  of  the 
decision,  or  a  stay  of  execution  pending  the  appeal,  it  may  make 
a  motion  in  writing  to  that  effect,  and  the  chairman  shall  use  his 


LABOR  AGREEMENT 


discretion  in  granting  it.  In  certifying  the  case  to  the  Board  of 
Arbitration,  the  chairman  shall  make  a  summary  of  the  case  in 
writing,  giving  the  main  facts  and  the  grounds  for  his  decision. 

Number  of  Higher  Trial  Board 

On  being  notified  of  the  appeal  to  the  Board  of  Arbitration, 
said  appeal  may  be  heard  by  the  chairman,  as  representative  of  the 
Board,  if  both  parties  agree  to  it  and  it  is  acceptable  to  him.  He  shall, 
how^ever,  have  the  right  to  call  for  the  full  Board  if  in  his  judgment 
the  situation  requires  it.  In  the  event  that  the  representative  of  the 
Board  of  either  party  is  unable  to  attend  a  Board  meeting,  such 
party,  may  at  its  discretion,  furnish  a  substitute. 

Hearing,  How  Conducted 

The  chairman  shall  determine  the  time  and  place  of  meeting  and 
shall  notify  all  the  parties  in  interest.  Each  party  shall  prepare 
the  case  in  advance,  and  have  its  testimony,  evidence,  and  facts  in 
readiness  for  the  hearing.  The  Board  shall  give  each  party  ample 
opportunity  to  present  its  case,  but  shall  be  the  judge  of  procedure 
and  shall  direct  the  hearing  as  to  its  order  and  course.  After  giving 
an  adequate  hearing  of  the  evidence  and  arguments  the  Board  shall 
render  its  decision  in  writing,  and  shall  furnish  copies  to  the  chief 
deputies  of  each  party  and  to  the  chairman  of  the  Trade  Board.  In 
the  event  that  the  Board  is  unable  to  reach  a  unanimous  decision, 
the  decision  of  a  majority  shall  be  binding. 

Motions  for  Rehearing 

The  Board  may  after  a  reasonable  time  grant  a  rehearing  of  any 
decision,  if,  in  its  judgment,  there  appears  sufficient  reasons  for 
doing  so.  Decisions  are  to  be  regarded  as  the  Board's  best  solu- 
tion of  the  problem  offered  to  it  at  the  time  of  hearing,  but  as  the 
problem  changes  with  time  and  experience  it  is  proper  there  should 
be  afforded  a  reasonable  opportunity  for  rehearing  and  review.  Mo- 
tions for  a  rehearing  shall  be  made  in  writing,  and  shall  set  forth 
the  reason  for  the  request. 

Enforcement  of  Decisions 

All  decisions,  whether  of  deputies,  Trade  Board,  or  Board  of 
Arbitration,  shall  be  put  into   execution   within  a   reasonable  time, 


10  THE  HART  SCHAFFNER  &  MARX 

and  failure  to  do  so,  unless  for  explainable  cause,  shall  convict  the 
delinquent  party  of  disloyalty  to  the  agreement.  The  party  in  error 
shall  be  notified  of  the  charge,  and  suitable  discipline  imposed.  The 
chief  deputy  of  each  party  shall  be  held  responsible  in  the  first,  in- 
stance, for  enforcement  of  decisions  or  adjustments  herein  referred 
to,  and  shall  be  held  answerable,  primarily,  to  the  Trial  Board. 

SECTION  III 

Rates  and  Hours 
Schedules  of  Piece  Work  Rates 

The  prices  and  rates  of  pay  that  are  to  be  in  force  during 
the  life  of  this  agreement  are  set  forth  in  the  schedules  prepared 
for  that  purpose,  duly  authenticated  by  the  proper  signatures,  and 
which  are  made  a  part  hereof. 

Hours  of  Work 

The  hours  of  work  in  the  tailor  shops  shall  be  forty-nine  per 
week,  with  the  Saturday  half  holiday. 

Minimum  Wage 

The  minimum  wage  scale  in  the  tailor  shop  shall  be  as  follows; 

1st  2nd  3rd 

month  month  month 

Machine  operators  (male  and  female) .  .  .$  5.00  $  7.00  $  9.00 

Women  in  hand  work  sections 5.00  6.00  8.00 

Men,  18  years  and  over,  not  operators.  .  .      8.00  10.00  12.00 

All  men  not  included  in  above 8.00  9.00  10.00 

Inspector  tailors  (men) 16.00 

Overtime 

For  work  done  in  excess  of  the  regular  hours  per  day,  overtime 
shall  be  paid  to  piece  workers  of  50%  in  addition  to  their  piece  work 
rates;  to  the  week  workers  at  the  rate  of  time  and  a  half;  no 
work  shall  be  allowed  on  Sundays  or  legal  holidays.  Christmas, 
New  Years,  Decoration  Day,  Fourth  of  July,  Labor  Day  and 
Thanksgiving  Day  shall  be  observed  as  holidays. 


Week  Workers'  Scale 

It  is  agreed  that  the  question  of  classified  wage  scale,  and 
periodical  increase  of  pay  for  service,  shall  remain  in  the  hands  of 
Messrs.  MuUenbach,  Campbell  and  Marimpietri,  to  whom  it  was 
referred  by  the  Conference  Committee,  until  they  are  ready  to  report. 

The  week  work  schedule  as  agreed  on  by  the  committee,  which 
has  been  accepted  and  signed  by  both  the  parties  hereto,  is  hereby 
made  a  part  of  this  agreement,  subject  to  any  changes  that  may  be 
made  as  provided  for  above. 

Piece  Rate  Committee 

Whenever  a  change  of  piece  rate  is  contemplated  the  matter  shall 
be  referred  to  a  specially  appointed  rate  committee  who  shall  fix 
the  rate  according  to  the  change  of  work.  If  the  committee  dis- 
agree the  Trade  Board  shall  fix  the  rate.  In  fixing  the  rates,  the 
Board  is  restricted  to  the  following  rule : 

Changed  rates  must  correspond  to  the  changed  work  and  new 
rates  must  be  based  upon  old  rates  where  possible. 

Hour  Rates  for  Piece  Workers 

In  case  workers  are  changed  from  piece  to  hour  work,  the  hour 
rates  for  such  piece  workers  shall  be  based  on  their  earnings  on 
piece  work. 

Changing  Operations 

In  the  event  a  piece  worker  is  required  to  change  his  mode  of 
operation  so  that  it  causes  him  to  lose  time  in  learning,  his  case  may 
be  brought  to  the  Rate  Committee  for  its  disposition. 

SECTION  IV 

Preference 

rhe  Preferential  Shop 

It  is  agreed  that  the  principle  of  the  preferential  shop  shall  pre- 
/^ail,  to  be  applied  in  the  following  manner: 

Preference  shall  be  applied  in  hiring  and  discharge.  When- 
:ver   the   employer   needs   additional    workers,   he    shall   first    make 


12  THE  HART  SCHAFFNER  &  MARX 

needed.  The  union  shall  be  given  a  reasonable  time  to  supply  the 
specified  help,  and  if  it  is  unable,  or  for  any  reason  fails  to  furnish 
the  required  people,  the  employer  shall  be  at  liberty  to  secure  them 
in  the  open  market  as  best  he  can. 

In  like  manner,  the  principle  of  preference  shall  be  applied  in 
case  of  discharge.  Should  it  at  any  time  become  necessary  to  reduce 
the  force  in  conformity  with  the  provisions  of  this  agreement  the 
first  ones  to  be  dismissed  shall  be  those  who  are  not  members  of  the 
union  in  good  and  regular  standing. 

Discipline  of  Union  Members 

The  Trade  Board  and  Board  of  Arbitration  are  authorized  to 
hear  complaints  from  the  union  concerning  the  discipline  of  its  mem- 
bers and  to  take  any  action  necessary  to  conserve  the  interests  of  the 
agreement.  The  members  referred  to  herein  are  those  who  have 
joined,  or  who  may  hereafter  join,  the  Amalgamated  Clothing  Work- 
ers of  America. 

Preference  in  Transfers 

If  it  becomes  necessary  to  transfer  workers  from  one  shop  to  an- 
other, the  non-union  workers  shall  be  the  first  to  be  transferred, 
unless  at  request  of  the  foreman,  union  workers  are  willing  to  go. 
Or  if  it  becomes  necessary  in  the  judgement  of  the  company 
to  transfer  a  worker  from  a  lower  to  a  higher  paid  section  or  opera- 
tion, it  is  agreed  that  union  workers  shall  have  preference  in  such 
transfers.  Provided,  that  nothing  herein  shall  be  construed  to  be  in 
conflict  with  the  provision  relating  to  transfer  for  discipline  and, 
provided,  that  they  are  qualified  to  perform  the  work  required  and 
that  their  departure  from  their  section  does  not  work  to  the  dis- 
advantage of  that  section. 

Overcrowding  of  Sections 

Overcrowding  of  sections  is  important  in  this  agreement  as  the 
point  at  which  the  provision  for  preference  becomes  operative.  It 
is  agreed  that  when  there  are  too  many  workers  in  a  section  to  per- 
mit of  reasonably  steady  employment,  a  complaint  may  be  lodged 
by  the  union,  and  if  proved,  the  non-union  members  of  the  section, 
or  as  many  of  them  as  may  be  required  to  give  the  needed  relief, 
shall  be  dismissed.     For  the  purpose  of  judging  the  application  of 


LABOR  AGREEMENT  13 

preference  the  Trade  Board  shall  take  into  consideration  the  actual 
employment  condition  in  the  section,  as  to  whether  there  are  more 
people  employed  at  the  time  of  complaint  than  are  needed  to  do  the 
work,  and  whether  they,  or  any  of  them,  can  be  spared  without  sub- 
stantial injury  to  the  company.  If  it  is  found  that  the  section  can  be 
reduced  without  substantial  injury,  the  Trade  Board  shall  enforce 
the  principle  of  preference  as  contemplated  in  the  agreement. 

Avoidance  of  Injury 

Among  the  things  to  be  considered  in  the  enforcement  of  pref- 
erence are  the  needs  of  maintaining  an  adequate  balance  of  sec- 
tions, of  the  requirements  of  the  busy  season,  of  the  difficulty  of 
hiring  substitutes,  and  the  risk  of  impairing  the  efficiency  of  the 
organization.  The  claims  for  enforcement  of  preference  and  for 
avoidance  of  injury  to  the  manufacturing  organization  are  to  be 
weighed  by  the  Trade  Board,  and  the  interests  of  both  claims  safe- 
guarded as  far  as  possible,  the  intention  being  to  enforce  preference 
so  far  as  it  can  be  done  without  inflicting  substantial  injury  on  the 
company. 

Preference  of  Seniority 

If  in  order  to  properly  balance  sections,  a  reduction  of  force 
be  required  greater  than  can  be  secured  by  the  laying  off  of  a  non- 
union worker  as  provided  for  herein,  then  there  may  be  laid  off 
those  who  are  members  of  the  union  in  the  order  of  their  seniority 
who  have  been  in  the  employ  of  the  company  for  a  period  of  six 
months  or  less,  provided  that  any  exceptionally  efficient  worker,  or 
any  especially  valuable  member  of  the  union,  may  be  exempted  from 
the  rule  of  seniority.  Provided,  also,  the  company  shall  give  notice 
to  the  chief  deputy  of  its  intention  to  discharge  under  this  clause, 
and  if  he  fails  to  agree  the  matter  shall  be  referred  to  the  Trade 
Board. 

SECTION  V 

Working  Conditions 

Discipline 

The  full  power  of  discharge  and  discipline  remains  with  the 
company  and  its  agents;  but  it  is  understood  that  this  power  should 


14  THE  HART  SCHAFFNER  &  MARX 

be  exercised  with  justice  and  with  due  regard  to  the  reasonable 
rights  of  the  employe,  and,  if  an  employe  feels  that  he  has  been  un- 
justly discharged,  he  may  have  appeal  to  the  Trade  Board,  which 
shall  have  the  power  to  review  the  case. 

Every  person  suspended  shall  receive  a  written  notice,  directing 
him  to  appear  at  the  office  of  the  company  for  a  decision.  Every 
suspension  notice  properly  presented  to  the  discipline  officer  of  the 
company  must  be  disposed  of  within  six  working  hours  from  the 
time  of  its  presentation  and  a  definite  decision  announced  to  the 
suspended  person. 

Stoppages 

In  case  of  a  stoppage  of  work  in  any  shop  or  shops,  a  deputy 
from  each  side  shall  immediately  repair  to  the  shop  or  shops  in  ques- 
tion. 

If  such  stoppage  shall  occur  because  the  person  in  charge  of  the 
shop  shall  have  refused  to  allow  the  people  to  continue  work,  he  shall 
be  ordered  to  immediately  give  work  to  the  people,  or  in  case  the  em- 
ployes have  stopped  work,  the  deputies  shall  order  the  people  to 
immediately  return  to  work,  and  in  case  they  fail  to  return  to  work 
within  an  hour  from  such  time  such  people  shall  be  considered  as 
having  left  the  employ  of  the  corporation,  and  shall  not  be  entitled 
to  the  benefit  of  these  rules. 

Detention  in  Shop 

Workers  shall  not  be  detained  in  the  shops  when  there  is  in- 
sufficient work  for  them.  The  company  or  its  agent  shall  exercise 
due  foresight  in  calculating  the  work  available,  and  as  far  as  prac- 
ticable shall  call  only  enough  workers  into  the  factory  to  do  the 
Work  at  sight.  And  if  a  greater  number  report  for  work  than 
there  is  work  for,  those  in  excess  of  the  number  required  shall 
be  promptly  notified  and  permitted  to  leave  the  shop.  The  work 
on  hand  shall  be  divided  as  equally  as  mav  be  between  the  remain- 
ing workers. 

Complaint  Slips 

Before  or  at  the  time  of  entering  any  complaint  against  any 
employe  in  the  complaint  book  said  employe  shall  be  notified  thereof 
so  he  may  have  the  opportunity  of  notifying  a  deputy  of  the  Board 
and  have  said  complaint  investigated. 


LABOR  AGREEMENT  15 

Lay-Oflfs 

Workers  who  are  dismissed  may  be  given  lay-off  memoranda 
allowing  them  to  return  to  their  shops  or  factories,  trimming  or 
cutting  rooms,  when  there  is  need  for  their  services.  Provided,  this 
clause  shall  not  be  construed  to  give  such  worker  precedence  over 
union  members,  or  to  interfere  in  any  way  with  the  provision  for 
preference  in  hiring. 

Transfer  of  Employes 

The  company  has  the  right  to  transfer  employes  for  purposes  of 
administration  or  discipline,  subject  to  review  by  the  Trade  Board. 
If  the  Board  finds  that  any  transfer  is  being  made  to  lower  wages, 
or  for  any  discrimination  or  improper  purpose,  or  if  injustice  is  being 
done  the  worker  by  the  transfer,  the  Board  may  adjust  the  complaint. 

SECTION  VI 

General  Provisions 
Lay  Off  of  Workers 

No  union  member  who  is  a  permanent  worker  shall  be  laid  off 
in  the  tailor  shops  except  for  cause,  whether  in  the  slack  or  busy 
season,  except  as  provided  herein.  Cause  for  temporary  lay  off 
may  be  alternation  of  w^orking  periods  in  slack  times,  reorganization 
or  reduction  of  sections,  lawful  discipline,  and  such  other  causes  as 
may  be  provided  for  herein  or  directed  by  the  Trade  Board. 

Go-Operation  to  Abolish  Waiting 

The  company  and  the  deputies  have  agreed  to  co-operate  to- 
gether to  abolish  all  unnecessary  waiting  in  the  shops. 

Division  of  Work 

During  the  slack  season  the  work  shall  be  divided  as  near  as 
is  practicable  among  all  hands. 

Abandonment  of  Position 

Whenever  any  employe  shall  have  absented  himself  from  his 
accustomed  place  without  giving  an  acceptable  reason  to  the  foreman 


16  THE  HART  SCHAFFNER  &  MARX 

or  other  officers  in  charge  of  his  work  before  the  end  of  the  second 
business  day  of  his  absence,  the  employer  may  consider  his  position 
forfeited.  Notice  of  absence  and  reason  therefor  must  be  given  to 
foreman  by  messenger,  mail  or  telephone. 

Abolishment  of  Section 

When  sections  are  abolished,  the  company  and  its  agents  shall 
use  every  effort  to  give  the  displaced  workers  employment  as  much 
as  possible  like  the  work  from  which  they  were  displaced,  within  a 
reasonable  time. 

Sickness 

Any  workers  who  are  absent  on  account  of  sickness  shall  be  re- 
instated in  their  former  positions  if  they  return  within  a  reasonable 
time. 

Trade  Board  Members 

Complaints  against  members  of  the  Trade  Board  as  workmen 
are  to  be  madc'  by  the  foremen  to  the  Trade  Board.  Any  action 
of  any  employe  as  a  member  of  the  Trade  Board  shall  not  be  con- 
sidered inimical  to  his  employment  with  the  corporation.  No  mem- 
ber of  a  Trade  Board  shall  sit  on  a  case  in  which  he  is  interested, 
or  to  which  he  is  a  party. 

Union  Membership 

The  provisions  for  preference  made  herein  require  that  the  door 
of  the  union  be  kept  open  for  the  reception  of  non-union  workers. 
Initiation  fee  and  dues  must  be  maintained  at  a  reasonable  rate,  and 
any  applicant  must  be  admitted  who  is  not  an  offender  against  the 
union  and  who  is  eligible  for  membership  under  its  rules.  Provided, 
that  if  any  rules  be  passed  that  impose  an  unreasonable  hardship, 
or  that  operate  to  bar  desirable  persons,  the  matter  may  be  brought 
before  the  Trade  Board  or  Board  of  Arbitration  for  such  remedy 
as  it  may  deem  advisable. 

The  Old  Agreement 

The  provisions  of  the  old  agreement  and  the  decisions  based  there- 
on shall  be  regarded  as  being  in  force  except  as  they  may  be  modi- 
fied by,  or  are  not  in  conflict  with  the  provisions  of  the  present 
agreement. 


LABOR  AGREEMENT  17 

SECTION  VII 

Loyalty  to  the  Agreement 

Experience  suggests  that  there  are  certain  points  of  strain  which 
it  would  be  wise  to  recognize  in  advance  and  to  safeguard  as  far  as 
possible.    Among  the  points  to  be  safeguarded  are  the  following : 

1.  When  dissatisfaction  arises  over  change  of  price  or  work- 
ing conditions.  It  is  believed  that  the  agreement  provides  a  remedy 
for  every  such  grievance  that  can  arise,  and  all  complainants  are 
urged  and  expected  to  present  their  cases  to  the  proper  officials  and 
await  an  adjustment.  If  any  one  refuses  to  do  this,  and,  instead, 
takes  the  law  in  his  own  hands  by  inciting  a  stoppage  or  otherwise 
foments  dissatisfaction  or  rebellion,  he  shall,  if  convicted,  be  ad- 
judged guilty  of  disloyalty  to  the  agreement  and  be  subject  to  dis- 
cipline by  the  Trade  Board. 

2.  Strain  may  arise  because  of  unsatisfactory  personal  rela- 
tions between  workers  and  officials.  The  company's  officials  are 
subject  to  the  law  as  are  the  workers,  and  equally  responsible  for 
loyalty  in  word  and  deed,  and  are  subject  to  discipline  if  found 
guilty  of  violation.  Any  complaints  against  them  must  be  made 
and  adjudicated  in  the  regular  manner.  They  are  to  respect  the 
workers  and  be  respected  by  them  in  their  positions,  and  supported 
in  the  proper  discharge  of  their  duties.  Any  one  indulging  in  im- 
proper language  or  conduct  calculated  to  injure  them  or  to  break 
down  their  authority  in  the  shop  shall  be  adjudged  guilty  of  disloyalty 
and  disciplined  accordingly. 

3.  Officials  of  the  union  are  equally  under  the  protection  of 
the  agreement  when  in  the  exercise  of  their  duties  as  are  the  officials 
of  the  company,  and  any  words  or  acts  tending  to  discredit  them  or 
the  union  which  they  represen'  or  which  are  calculated  to  injure  the 
influence  or  standing  of  thf,  union  or  its  representatives  shall  be 
considered  as  disloyalty  to  the  agreement  and  the  offender  shall  be 
subject  to  discipline  by  the  Trade  Board. 

Provided,  however,  that  no  reasonable  criticism  or  expression 
of  disagreement  expressed  in  proper  language  shall  be  deemed  a  viola- 
tion within  the  meaning  of  this  section. 

4.  If  any  worker  shall  wilfully  violate  the  spirit  of  the  agree- 
ment by  intentional  opposition  to  its  fundamental  purposes  and  es- 


18  THE  HART  SCHAFFNER  &  MARX 

pecially  if  he  carry  such  wilful  violation  into  action  by  striking  and 
inciting  others  to  strike  or  stop  work  during  working  hours,  he  shall, 
if  charge  is  proven,  be  subject  to  suspension,  discharge  or  fine.  Pro- 
vided, that  if  a  fine  is  imposed  its  amount  shall  be  determined  by 
the  chairman  of  the  Trade  Board  and  shall  not  be  less  than  $1.00  or 
more  than  $5.00  for  each  offense. 

5.  If  any  foreman,  superintendent  or  agent  of  the  company 
shall  wilfully  violate  the  spirit  of  this  agreement  and  especially  if 
he  fails  to  observe  and  carry  out  any  decision  of  the  Trade  Board 
or  Board  of  Arbitration,  he  shall,  if  charge  is  proven,  be  subject  to 
a  fine  of  not  less  than  $10.00  or  more  than  $100  for  each  offense,  at 
the  discretion  of  the  chairman  of  the  Trade  Board. 

SECTION  VIII 

Cutting  and  Trimming  Departments 

The  cutting  and  trimming  departments  shall  be  subject  to  the 
general  provisions  of  this  agreement,  and  to  the  bases  and  provisions 
of  the  old  agreement,  except  as  they  may  be  modified  by,  or  found  to 
be  in  conflict  with,  the  special  provisions  agreed  on  for  these  depart- 
ments. It  is  understood  that  these  special  provisions  are  intended  to 
change  certain  features  of  the  old  agreement,  and  if  they  are  found 
to  be  in  conflict,  the  new  provisions  are  to  be  considered  as  the  guide 
of  practice,  and  as  representing  the  latest  and,  therefore,  the  most 
authoritative  expression  of  the  wills  of  the  parties  hereto.  The  new 
special  provisions  are  as  follows: 

1.  The  principle  of  preference  as  applied  in  the  cutting  and  trim- 
ming rooms  shall  be  as  before,  except  that  the  clause  relating  to  cutters 
who  are  exempted  from  union  obligations  is  expressly  defined  as  being 
strictly  limited  to  the  individuals  now  on  the  exemption  list.  Should 
the  number  on  that  list  be  for  any  reason  reduced,  it  is  understood 
that  no  other  cutters  and  trimmers  can  be  added. 

2.  The  company  shall  not  reduce  the  wages  of  any  cutter.  The 
company  shall  report  to  the  commission  all  failures  of  cutters  to  pro- 
duce their  quota  of  work  when  in  its  judgment  the  delinquency  is  not 
caused  by  the  conditions  of  the  work.  The  commission  shall  investigate 
the  matter  and  advise  with  the  cutter  concerning  it.  At  the  end  of  a 
period  sufliciently  long  to  determine  the  merits  of  the  case,  the  cutters' 


LABOR  AGREEMENT  19 


commission  shall,  if  it  deem  necessary,  find  measures  to  discipline  cut- 
ters to  conform  to  their  production.  In  judging  the  merits  in  such 
instances,  the  commission  shall  use  the  principle  of  comparative 
efficiency. 

3.  All  cutters  whose  present  wages  are  less  than  $26.00  per  week 
shall  receive  an  increase  of  $1.00  per  week.  This  increase  shall  not 
be  taken  into  account  by  the  commission  in  calculating  the  quota  of 
work  required  by  such  cutter. 

4.  The  company  shall  prefer  men  now  in  the  trimming  room 
when  increasing  the  number  of  apprentice  cutters. 

5.  The  salaries  of  experienced  cutters  who  are  employed  tempo- 
rarily shall  for  the  first  two  weeks  be  at  a  rate  not  less  than  the  salaries 
they  received  in  their  last  position.  After  two  weeks,  the  temporary 
cutters  shall  be  paid  on  the  same  basis  as  the  regular  men,  their  salary 
to  be  fixed  by  the  cutters'  commission  on  the  basis  of  their  produc- 
tion, and  their  comparative  efficiency. 

6.  The  company  shall  continue  the  practice  of  paying  cutters 
for  Christmas,  New  Years,  Decoration  Day,  Fourth  of  July,  Labor 
Day  and  Thanksgiving  Day. 

Paper  Cutting  Department 

All  men  who  cut  paper  patterns  shall  be  members  of  the  union ; 
except  that,  by  special  agreement,  one  man,  Mr.  Lindsay,  may  be 
exempted  from  such  requirement,  and  shall  be  added  to  the  exist- 
ing exempted  group. 

The  three  apprentices  now  in  the  paper  cutting  department  shall 
have  the  status,  privileges  and  protection  of  the  regular  cutting  room 
apprentices,  including  the  right  to  learn  all  branches  of  the  trade,  and 
be  subject  to  the  same  requirements  and  provisions.  The  ratio  of 
apprentices  to  cutters  in  the  paper  cutting  department  shall  not  exceed 
that  which  obtains  now,  namely,  three  apprentices  to  seven  permanent 
cutters. 

The  company  may  employ  such  other  boy  help  in  this  department 
as  is  needed,  and  such  boys,  may  at  its  option,  be  promoted  to  posi- 
tions as  apprentices  when  vacancies  arise,  but  not  in  excess  of  the 
total  number  of  apprentices  provided  for  in  the  agreement. 

Permanent  graders  employed  in  the  grading  department  may 
work  at  paper  cutting  temporarily  when  there  is  not  sufficient  work  in 
their  own  department.     Boys,  who  are  not  apprentices,  shall  not  take 


20  THE  HART  SCHAFFNER  &  MARX 


the  places  of  blockers  in  any  permanent  manner,  but  they  may  for 
short  times,  to  fill  odd  unemployed  hours,  be  permitted  to  try  to  do 
blocking  in  the  slack  seasons. 

Damage  Department 

All  employes  in  the  damage  department  who  recut  parts  of 
garments  shall  be  members  of  the  union  or  exempted  men.  The 
manager  of  the  department  and  helpers  who  do  not  cut  parts  shall  not 
be  members  of  the  union. 

Trimming  Department 

1.  All  men  now  on  the  trimmers  pay  roll  who  are  receiving 
not  to  exceed  $15.00  are  to  be  increased  $2.00  per  week.  All  men 
receiving  a  weekly  wage  of  over  $15.00  and  not  exceeding  $20.00 
shall  receive  an  increase  of  $1.00  per  week.  Except  that  apprentice 
trimmers  having  been  employed  less  than  6  months  are  to  receive  an 
increase  of  $1.00  per  week. 

2.  The  following  periodical  increases  shall  be  granted  during 
the  term  of  this  agreement:  Men  receiving  under  $12.00  shall 
receive  an  increase  of  $1.00  per  week  every  three  months  until  their 
wages  shall  be  $12.00  per  week.  Men  receiving  over  $12.00  and 
less  than  $18.00  shall  receive  an  increase  of  $1.00  every  six  months 
until  their  wages  shall  be  $18.00  per  week.  Men  receiving  over 
$18.00  per  week  and  less  than  $20.00  shall  receive  an  increase  of 
$1.00  per  week  every  year  until  their  wages  shall  be  $20.00  per  week. 

3.  All  men  starting  to  v5^ork  on  the  band-saw  machines  shall  re- 
ceive not  less  than  $18.00  per  week  and  shall  receive  an  increase  of 
$1.00  per  week  every  six  months  until  their  wages  are  $20.00.  There- 
after, they  shall  receive  an  increase  of  $1.00  per  week  every  year 
until  they  reach  the  rate  of  $24.00.  No  man  shall  be  assigned  to  the 
band-saw  machine  permanently  until  they  have  been  employed  in 
the  trimming  room  two  years. 

4.  So  far  as  practicable,  the  apprentices  in  the  trimming  room 
shall  begin  on  their  work  on  the  lower  grades  of  the  trade  and 
shall  be  advanced  gradually  to  the  more  difficult  ones. 

5.  Apprentices  shall  not  be  permanently  transferred  to  work  re- 
quiring the  use  of  any  electric  machines  until  they  have  been  employed 
for  one  year  or  more. 


LABOR  AGREEMENT  21 

6.  The  wages  of  experienced  men  employed  shall  be  determined 
in  the  same  manner  as  in  the  cutting  room. 

7.  The  jack  boys  and  canvas  pickers  are  to  be  under  the  juris- 
diction of  the  union,  with  this  express  provision :  That  these  two 
sections  are  not  to  be  under  the  agreed  scale  for  trimmers,  but  are 
to  be  subject  to  a  special  scale  of  wages,  which  scale  is  to  be  subject 
to  the  decision  of  the  board  of  arbitration. 


Signatures  to  this  Agreement 

FOR    THE    BOARD    OF    ARBITRATION 

J.  E.  Williams,  Chairman 
W.  O.  Thompson,  for  the  A.  C.  W.  A.       Carl  Meyer,  for  H.  S.  &  M. 

FOR   THE   TRADE    BOARD 

James  Mullenbach,  Chairman 

FOR  HART  SCHAFFNER  &  MARX 

Harry  Hart,  President  Joseph  SchafFner,  Secretary 

Max  Hart,  Vice-President  Mark  W.  Cresap,  Vice-President 

Earl  Dean  Howard  Milton  A.  Strauss  Gilbert  L.  Campbell 

A.  M.  Levy  Samuel  Browne 

FOR    THE    AMALGAMATED    CLOTHING    WORKERS    OF    AMERICA 

Sidney  Hillman,  President       A.  D.  Marimpietri,  President  Joint  Board 
Samuel  Levin,  Deputy  Local  39 
Harry  Wolchnovesky,  Vice-President  Local  61 
Morris  Spitzer,  President  Local  144 
Nathan  Garbut,  Recordings;  Secretatj  Local  152 
John  Katilius,  Deputy  Local  26^ 
Edward  Anderson,  Deputy  Local  61 
Joseph  Glickman,  Deputy  Local  152 
Vincent  Pachkauskas,  President  Local  269 
Frank  Rosenbloom  Louis  Taback 

Sam  Rissman  Hyman  Isovitz 

Robert  Cunat  Frank  Petrick 

Sam  Diamond  Joe  Kaminsky 


22  THE  HART  SCHAFFNER  &  MARX 

The  Experience  of  Hart  SchafFner  & 
Marx  with  Collective  Bargaining 

(Prepared  for  the  Federal  Industrial  Relations  Commission 

as  a  part  of  testimony  for  the  hearing  at 

Washington,  April,  1914.) 

During  the  past  four  years,  this  Company  has  concerned  itself 
very  deeply  in  developing  its  relations  with  its  employees.  Labor 
disturbances  brought  keenly  to  our  attention  the  necessity  of  having 
the  good  will  of  the  workers  in  order  that  we  might  maintain  and 
preserve  the  good  will  of  our  customers  and  insure  the  stability  of 
our  business. 

We  are  glad  to  give  an  outline  of  our  experience,  believing  it 
has  yielded  results  in  the  form  of  certain  principles  of  policy  and 
action,  which  may  be  helpful  in  the  promotion  of  industrial  peace. 

In  making  this  statement  we  are  particularly  concerned  that 
the  formal  and  external  features  of  our  plan  shall  not  be  confused 
with  the  real  and  vital  substance  of  the  arrangements,  to  the  neglect 
of  the  spirit  and  of  the  principles  which  are  in  reality  responsible 
for  whatever  progress  we  have  made. 

After  an  opportunity  of  several  years  to  study  causes  and  efifects, 
we  are  convinced  that  the  prime  source  of  difficulty  was  a  lack  of 
contact  and  understanding  between  our  people  and  ourselves.  The 
failure  to  adjust  petty  grievances  and  abuses  became  the  cause  of 
irritation  entirely  disproportionate  to  their  importance  when  taken 
singly,  but  which  in  accumulation  became  the  main  ground  for 
complaint. 

There  was  no  special  complaint  against  the  hours  of  work, 
which  were  fifty-four  per  week,  and  which  have  since  been  reduced 
to  fifty-two.  The  physical  working  conditions  were  good  and  in 
fact  very  far  advanced  compared  with  the  general  conditions  in  the 
industry.     There  was  a  general  demand  for  higher  wages,  but  we 


LABOR  AGREEMENT  23 

have  always  looked  upon  this  as  an  accompanying  demand  rather 
than  a  first  cause  of  difficulty. 

A  settlement  was  reached  by  an  agreement  to  arbitrate,  one 
arbitrator  to  be  named  by  each  side  and  the  two  to  choose  a  third. 
It  was  not  possible  to  agree  upon  the  third  member  and  the  efiforts 
to  arbitrate  were  started  with  only  the  two  partisan  men  on  the 
board.  This  proved  to  be  a  good  thing.  For  the  time  being  it  forced 
us  to  settle  matters  by  agreement  and  compromise  rather  than  by 
arbitrary  decision,  and  this  method  has  become  a  distinctive  feature 
of  the  whole  system.  A  third  arbitrator  was  eventually  chosen,  and 
he  is  a  man  peculiarly  capable  of  aiding  in  creating  sympathetic 
understanding  on  the  part  of  all. 

Favorable  results  did  not  appear  at  once,  but  were  the  natural 
and  legitimate  effects  of  various  devices  introduced  to  meet  diffi- 
cult situations  as  they  arose,  and  of  certain  principles  of  fair  dealing, 
into  harmony  with  which  we  have  attempted  to  bring  our  business 
policies. 

In  addition,  the  Company  created  a  labor  department.  A 
university  professor,  trained  in  economics,  was  engaged  to  study  the 
situation  and  draft  a  plan  for  promoting  better  relations  with  our 
employees.  At  the  beginning  the  task  appeared  stupendous,  as 
grievances  were  highly  magnified  and  exaggerated  by  frequent  re- 
iteration of  the  more  radical  leaders  for  the  purpose  of  keeping  the 
war  spirit  at  a  high  temperature. 

This  new  department,  headed  by  Professor  Earl  Dean  Howard 
of  Northwestern  University,  gradually  assumed  certain  functions  in 
which  the  workers  had  a  direct  interest  and  administered  them 
with  the  main  purpose  always  in  view.  The  chief  duties  of  the 
labor  department  now  are:  the  maintenance  of  a  system  for  the 
prompt  discovery  and  investigation  of  any  abuses  or  complaints 
existing  anywhere  among  the  employees;  the  recommendation  of 
measures  designed  to  eliminate  the  source  of  the  complaint ;  protecting 
the  Company's  interests  in  the  Board  of  Arbitration  and  the  Trade 
Board  (a  court  of  first  instance  established  to  adjust  complaints 
and  interpret  the  agreements)  ;  negotiating  with  the  business  agents 
of  the  unions  and  satisfying  their  demands  as  far  as  possible;  ad- 
ministering all  discipline  for  all  the  factories  (all  executives  have 
been  relieved  of  this  function)  ;  general  oversight  of  all  hiring;  the 


24  THE  HART  SCHAFFNER  &  MARX 

maintenance  of  hospital  and  rest  rooms;  the  administration  of  a 
charity  fund  for  unfortunate  employees,  of  a  loan  fund,  and  of  the 
Workman's  Compensation  Act;  responsibility  for  the  observance  of 
the  state  and  municipal  laws  regarding  child  labor,  health  and  safety, 
also  for  the  strict  observance  of  all  agreements  with  the  unions  or 
decisions  of  the  two  Boards;  education  of  the  foremen  and  people  in 
courtesy,  patience,  mutual  helpfulness  and  other  peace-producing 
qualities;  suggesting  devices  for  the  amelioration  of  hardships  inci- 
dental to  the  industry  and  for  the  higher  efficiency  of  operating. 

Industrial  peace  will  never  come  so  long  as  either  employer 
or  employee  believe  that  they  are  deprived  of  rights  honestly  belong- 
ing to  them.  Our  experience  has  taught  that  the  business  man  in 
authority  is  a  trustee  of  various  interests,  including  his  own,  and  if 
he  administers  his  business  so  as  to  conserve  and  harmonize  these 
interests  to  the  best  of  his  ability,  he  is  most  likely  building  an  endur- 
ing success. 

A  labor  department,  critical  of  everything  touching  the  inter- 
ests of  the  workers,  a  Trade  Board  and  a  Board  of  Arbitration  con- 
stantly reviewing  and  discussing  policies  and  methods,  protect  us 
against  ourselves  and  make  it  impossible  to  violate  or  overlook  the 
rights  of  the  employees.  These  agencies  undoubtedly  create  limita- 
tions which  at  times  seem  vexatious,  but  we  have  found  that,  in  the 
long  run,  legitimate  progress  has  been  helped  rather  than  hindered 
thereby.  Innumerable  cases  have  arisen  where  we  have  been  obliged 
to  change  plans  and  policies  much  against  our  will  yet  where  the 
final  results  were  better  because  of  the  change. 

Arbitration  and  conciliation  should  be  applied  to  all  depart- 
ments of  a  business  wherever  there  is  a  conflict  of  interest.  If  noth- 
ing more,  it  insures  exhaustive  discussion  of  every  matter  of 
importance,  gives  everybody  an  opportunity  to  express  his  opinions, 
frequently  brings  to  light  valuable  suggestions,  and  makes  possible 
a  higher  degree  of  co-operation  and  team-work.  It  is  a  method  to 
be  employed  continuously  to  secure  harmony  and  satisfaction.  Pa- 
tience and  self  control  are  essential  in  administering  a  business  on 
this  basis.  It  is  human  nature  to  resent  interference  and  to  desire 
unrestricted  liberty  of  action,  but  these  conditions  are  not  necessary 
and  are  often  inimical  to  true  success.  Few  men  can  use  unlimited 
power  wisely  and  no  wise  men  will  dispense  with  checks  which  tend 


LABOR  AGREEMENT  25 

to  keep  him  in  the  right  path ;  certainly,  he  will  approve  of  checks 
calculated  to  restrain  his  agents  from  arbitrary  and  unjust  acts 
toward  fellow-employees. 

The  application  of  these  ideas  to  the  labor  problem,  especially 
as  a  help  to  the  employer  in  deciding  what  attitude  to  take  toward 
trade  unionism,  has  produced  favorable  results  with  us.  If  the 
employer  voluntarily  limits  his  own  authority  and  agrees  to  conduct 
his  business  according  to  the  rule  of  reason  and  even-handed  justice 
as  interpreted  by  an  outside  authority,  such  as  an  arbitration  board, 
he  must  insist  that  the  organized  employees  submit  to  the  same 
limitation,  otherwise  his  sacrifice  will  be  futile  and  his  submission  to 
injustice  cowardly. 

Unions  should  be  recognized  and  favored  in  the  same  propor- 
tion as  they  manifest  a  genuine  desire  to  govern  themselves  efficiently. 
All  agreements  should  be  so  drawn  as  to  release  the  employer  from  his 
obligations  whenever  the  unions  fail  to  observe  theirs.  Arbitration 
boards,  officials  in  charge  of  labor  matters,  and  union  leaders  should 
direct  their  operations  and  make  their  decisions  with  the  one  purpose 
always  in  mind,  namely,  to  make  it  profitable  and  easy  for  all  parties 
to  acquiesce  in  the  rule  of  reason  and  justice,  and  dangerous  and 
difficult  for  them  to  attempt  to  get  unjust  advantage.  We  did  not 
realize  and  we  believe  the  majority  of  employers  do  not  yet  realize 
the  extent  to  which  the  attitude  and  conduct  of  their  organized  em- 
ployees reflect  their  own  policies  and  conduct.  Strict  adherence  to 
justice,  especially  if  interpreted  to  the  people  by  a  board  in  whom 
they  have  confidence,  will  gradually  educate  them  and  their  leaders 
to  see  the  advantage  of  this  method.  It  is  fortunate  for  the  em- 
ployer if  his  own  employees  have  an  autonomous  organization,  in- 
fluenced as  little  as  possible  by  outsiders. 

In  our  own  business,  employing  thousands  of  persons,  some  of 
them  newly-arrived  immigrants,  some  of  them  in  opposition  to  the 
wage  system,  hostile  to  employers  as  a  class,  we  have  observed  aston- 
ishing changes  in  their  attitude  during  three  years  under  the  influence 
of  our  labor  arrangements.  They  seem  to  understand  that  they  can 
rely  upon  promises  made  to  them  by  the  Company;  that  all  disputes 
will  be  finally  adjusted  according  to  just  principles  interpreted  by 
wise  arbitrators. 

Disciplinary  methods  are  a  prolific  source  of  dispute  with  em- 


26  THE  HART  SCHAFFNER  &  MARX 

ployees  and  it  is  difficult  to  avoid  offending  their  sense  of  justice, 
especially  if  they  are  not  fully  informed  of  all  the  facts  in  the  case 
and  hear  only  one  side.  Moreover,  petty  officials  are  not  likely  to 
show  good  judgment  in  administering  disciplinary  povs^er  or  to  have 
correct  theories  about  it ;  very  frequently  they  are  tempted  to  satisfy 
private  dislikes  under  pretense  of  disciplining.  We  regard  it  as  an 
essential  element  in  maintaining  industrial  peace  to  centralize  the 
administration  of  discipline  in  one  official  having  no  interest  except 
to  maintain  the  efficiency  of  the  shops  without  disturbing  the  harmony 
and  good  will  of  the  people. 

Our  theory  of  discipline  is  that  it  should  be  as  mild  as  possible 
consistent  with  effectiveness  in  securing  the  desired  results.  Com- 
plaint memoranda  are  given  as  warnings  by  the  foreman ;  if  these 
are  disregarded,  suspension  slips  are  next  given  which  remove  the 
offenders  from  the  pay-roll  until  reinstated  by  the  discipline  officer. 
An  investigation  is  made,  and,  as  a  rule,  the  suspended  person  is 
restored  to  his  position  on  probation.  This  method  is  continued  until 
it  becomes  apparent  that  the  employee  is  either  hopelessly  incom- 
petent or  insubordinate,  whereupon  a  temporary  lay-off  or  discharge 
may  follow.  Our  Trade  Board,  composed  of  workmen  and  fore- 
men, presided  over  by  a  neutral,  outside  chairman,  will  give  a  hear- 
ing to  the  case  if  requested,  and  may  order  a  reinstatement  or  modi- 
fication of  the  penalty.  Appeal  from  this  tribunal  may  be  taken  to 
the  Board  of  Arbitration  for  final  adjudication.  In  spite  of  its 
apparent  complexity,  the  administration  of  discipline  has  become  very 
satisfactory  to  both  sides  and  very  few  cases  even  come  before  the 
Trade  Board,  and  for  many  months  none  have  been  appealed. 

Much  depends  upon  the  leaders  of  the  workers.  We  have  had 
some  experience  with  misinformed,  and  self-seeking  men  who  secured 
temporary  influence  over  the  people,  but  somehow  they  failed  to 
thrive  in  the  atmosphere  of  our  arrangement.  Some  of  these  same 
men  have  been  delivered  of  their  worse  qualities  as  they  have  learned 
the  advantage  of  better  methods  of  dealing.  The  system  seems  to 
work  out  a  selection  of  the  fittest  candidates  and  trains  them  to  be- 
come efficient  leaders  and  executives,  skilled  in  negotiation,  in  plead- 
ing and  cross-examination  before  the  judicial  boards,  in  organizing, 
disciplining  and  leading  the  people.  One  of  the  leaders  in  particular 
developed  a  wonderful  influence  over  all  who  came  in  contact  with 


LABOR  AGREEMENT  27 

him  on  account  of  his  high  ideals,  his  patience  under  trying  circum- 
stances, and  his  indomitable  faith  in  the  ultimate  success  of  right 
method. 

At  the  beginning  of  our  experiment  we  believed  that  the  labor 
union  was  a  competitor  for  the  good  will  of  the  people  and  that  both 
could  not  have  this  good  will  at  the  same  time;  we  feared  that  the 
union  would  get  the  credit  for  anything  granted  to  the  people,  thus 
nullifying  the  good  efifect  to  the  Company  of  any  concessions  or  bene- 
fits given  to  them.  Concessions  wrung  from  the  reluctant  employer 
by  the  union  through  a  Board  of  Arbitration,  especially  if  the  with- 
holding of  the  concession  seems  contrary  to  the  sense  of  justice  of  the 
workers,  of  course  gain  no  good  will  for  the  Company. 

Without  some  kind  of  organization  among  the  people,  there 
are  no  responsible  and  authorized  representatives  with  whom  to  deal 
and  the  real  interests  of  the  people  as  they  see  them  themselves  are 
likely  to  be  overlooked  or  disregarded.  The  chosen  representatives 
are  made  to  feel  the  dignity  and  honor  of  their  positions  so  long  as 
they  deal  fairly  and  reasonably;  those  who  adopt  a  different  policy 
invariably  fail  and  retire  with  considerable  loss  of  respect  and 
prestige.  Those  whose  motives  are  good  and  who  can  reason  intel- 
ligently grow  in  the  esteem  of  their  fellows  through  their  success  in 
negotiation  and  arbitration.  They  appreciate  the  consideration  shown 
them  by  the  Company  and  the  arbitrators  and  reciprocate  by  pro- 
claiming the  fairness  of  the  Company. 

One  of  the  most  important  functions  of  our  labor  department  is 
welfare  work — giving  advice  and  material  assistance  to  unfortunate 
employees,  improving  the  working  conditions  in  the  shops,  maintain- 
ing rest  rooms  and  libraries,  etc. — but  this  is  not  done  for  the  purpose 
of  more  easily  depriving  the  workers  of  their  right  to  be  represented 
in  all  matters  to  which  their  interests  are  involved.  Working  men 
are  quick  to  resent  the  substitution  of  favors  for  justice.  Welfare 
work,  however,  in  connection  with  general  fair  dealing  is  very  ef- 
fective in  securing  good  will,  especially  if  it  increases  the  personal 
contact  between  the  officials  of  the  Company  and  the  employees. 

Not  the  least  of  the  advantages  we  have  derived  from  our  sys- 
tem is  the  reaction  of  the  ideas  and  ideals,  first  applied  in  the  labor 
department,  upon  the  other  departments  and  particularly  upon  the 
executive  staff  of  the  manufacturing  department.     Inefficient  methods 


28  THE  HART  SCHAFFNER  &  MARX 

of  foremen,  lack  of  watchful  supervision,  and  inaccurate  information 
as  to  prevailing  conditions  on  the  part  of  higher  executives;  these 
could  not  long  survive  when  every  complaint  brought  by  a  workman 
was  thoroughly  investigated  and  the  root-cause  of  the  trouble  brought 
to  light. 

The  unexpected  and  indirect  results  of  our  labor  policy  in 
increasing  the  efficiency,  reforming  the  conduct,  and  raising  the  intel- 
ligence of  the  executives  coming  into  contact  with  the  system  have 
been  as  profitable  and  satisfactory  as  the  direct  result,  i.  e.,  the  crea- 
tion of  harmony  and  good  will  on  the  part  of  the  people  toward  the 
Company. 

A  summary  of  the  essentials  of  the  system  which  has  produced 
such  gratifying  results  in  our  institution  would  include:  a  labor 
department,  responsible  for  industrial  peace  and  good  will  of  the 
employees,  thereby  of  necessity  fully  informed  as  to  their  sentiments, 
their  organizations,  and  really  representing  their  interests  in  the 
councils  of  the  Company ;  a  means  for  the  prompt  and  final  settle- 
ment of  all  disputes;  a  conviction  in  the  minds  of  the  employees  that 
the  employer  is  fair  and  that  all  their  interests  are  safeguarded ;  con- 
stant instruction  of  the  leaders  and  people  in  the  principles  of  busi- 
ness equity,  thus  gradually  evolving  a  code  accepted  by  all  parties  in 
interest,  serviceable  as  a  basis  for  adjustment  of  all  difficulties;  the 
development  of  efficient  representation  of  the  employees — honest, 
painstaking,  dignified,  reasonable,  eager  to  co-operate  in  maintaining 
peace,  influential  with  their  people  and  truly  representative  of  their 
real  interests;  a  friendly  policy  toward  the  union  so  long  as  it  is 
conducted  in  harmony  with  the  ethical  principles  employed  in  the 
business  and  an  uncompromising  opposition  to  all  attempts  to  coerce 
or  impose  upon  the  rights  of  any  group  or  to  gain  an  unfair  advantage  ; 
and  a  management  that  guarantees  every  man  full  compensation  for 
his  efficiency  and  prevents  anyone  receiving  anything  he  has  not 
earned. 

Briefly  expressed,  it  is  simply  the  natural  and  healthy  relation 
which  usually  exists  between  the  small  employer  and  his  half  dozen 
workmen,  artificially  restored,  as  far  as  possible  in  a  large-scale 
business  where  the  real  employer  is  a  considerable  group  of  executives 
managing  thousands  of  workers  according  to  certain  established  prin- 
ciples and  policies. 

HART  SCHAFFNER  &  MARX. 


LABOR  AGREEMENT  29 


The  Development  of  Government 
in  Industry 

By  Earl  Dean  Howard' 
(Reprinted  from  the  Illinois  Law  Review  for  March,  1916) 

During  the  past  five  years,  in  several  branches  of  the  garment- 
making  industries  of  New  York  and  Chicago,  certain  principles  for 
the  adjustment  of  conflicting  interests  with  employees  by  legal 
methods  have  been  experimented  with.  This  experience  has  sug- 
gested certain  ideas  and  possibilities  interesting  to  those  who  appre- 
ciate the  growing  danger  of  leaving  the  settlement  of  employer- 
employee  controversies  to  the  arbitrament  of  industrial  warfare  and 
who  understand  how,  in  other  human  relations,  the  crude  method 
of  force  has  been  superseded  by  the  legal  method. 

The  protocoP  in  the  cloak  and  suit  trade,  together  with  half  a 
dozen  similar  protocols  in  other  branches  of  garment-making  in 
New  York,  the  Rockefeller  system  of  industrial  representation  in 
the  Colorado  mines,  and  the  labor  agreement  of  Hart,  SchafEner  & 
Marx^  in  Chicago,  grew  out  of  long  and  bitter  strikes,  severe  enough 
on  both  sides  to  convince  the  parties  thereto  that  the  old  system 
was  intolerable.  Complete  domination  by  either  side  was  impossible 
and  intermittent  struggles  over  the  division  of  power  were  costly 
and  unsatisfactory.  The  protocols  and  agreements  provided  a  system 
of  government  to  protect  each  side  against  the  other. 

Any  system  of  government  for  the  adjustment  of  human  rela- 


1.  Director  of  Labor  for  Hart  Schafifner  &  Marx;  Professor  of 
Economics  in  the  College  of  Liberal  Arts  and  Professor  of  Banking 
and  Finance  in  the  School  of  Commerce,  Northwestern  University. 

2.  See  Bulletin  of  U.  S.  Bureau  of  Labor  Statistics  No.  144, 
March,  1914,  entitled,  "Industrial  Court  of  the  Cloak,  Suit  and  Skirt 
Industry  of  New  York  City,"  by  Charles  H.  Winslow. 

3.  See  Monthly  Bulletin  of  the  Pennsylvania  Department  of 
Labor  and  Industry,  August,  1915.  "The  Experience  of  Hart  Schaffner 
&  Marx  with  Collective  Bargaining." 


30  THE  HART  SCHAFFNER  &  MARX 

tions  and  conflicting  interests  by  law  rather  than  by  force  requires 
some  devices  to  perform  legislative,  executive  and  judicial  functions. 
Rules  must  be  laid  down  and  interpreted,  administrative  duties 
must  be  discharged,  effective  limitations  and  requirements  must  be 
placed  upon  individuals  to  secure  co-ordination,  and  all  questions 
in  dispute  must  be  authoritatively  decided. 

There  is  a  strong  tendency  to  enlarge  the  scope  of  political 
government  so  as  to  include  also  industrial  government.  Whether 
this  shall  grow  into  state  socialism  or  whether  private  enterprises 
will  be  able  individually  or  collectively  to  establish  a  satisfactory 
form  of  government,  supplementary  to  political  government,  is  one 
of  these  large  interesting  questions  which  may  be  decided  within  a 
generation  or  two.  The  solution  may  depend  upon  the  ability  of 
the  employees  to  develop  a  constructive  power  and  effective  gov- 
ernment among  themselves. 

Employers  and  those  responsible  for  the  prosperity  of  large 
enterprises  are  reluctant  to  lose  any  part  of  their  control.  When 
they  discover  that  the  power  has  passed  from  them,  or  when  their 
government  has  failed  to  maintain  place,  they  are  then  ready  for 
experiment.  The  protocols  and  other  experiments  have  always 
grown  out  of  strikes,  usually  long  and  exhausting. 

Structure  of  Government. — The  first  step  is  an  agreement  on 
constitution  providing  usually  for  a  board  of  arbitration.  Executive 
control  is  left  in  the  hands  of  the  employer  but  subject  to  the  limi- 
tations of  the  agreement  and  the  decrees  of  the  board.  The  repre- 
sentatives of  the  employees,  usually  labor  union  officials,  strive 
through  the  board  to  extend  these  limitations  to  inhibit  all  acts  of 
the  employer  which  the  employees  or  their  officials  conceive  to  be 
of  any  disadvantage  to  themselves.  The  system  resembles  a  con- 
stitutional monarchy. 

The  legislative  function  is  usually  inadequately  provided  for. 
New  conditions  arise  to  which  the  rules  of  the  agreement  and  pre- 
vious decisions  are  not  applicable.  The  employer  claims  the  right 
to  legislate  by  administrative  decree  on  the  ground  that  he  has  all 
the  authority  not  specifically  relinquished  in  the  agreement.  The 
union  officials  urge  the  board  to  assume  jurisdiction  and  by  a  decision 
create  a  precedent  which  has  the  effect  of  law.  In  practice  legislation 
originates  in  several  ways:     (1)    The  constitution  or  basic  agreement 


LABOR  AGREEMENT  31 

entered  into  by  the  parties  at  intervals  for  definite  terms  and  with 
which  the  decisions  of  the  board  of  arbitration  must  harmonize; 
(2)  administrative  orders  promulgated  by  the  employer  and  subject 
to  veto  or  alteration  by  the  board  of  arbitration  on  the  ground  of 
unconstitutionality;  (3)  judicial  decisions  having  the  force  of  prece- 
dents by  the  board  of  arbitration  in  adjudicating  complaints — "judge- 
made"  law. 

The  judicial  function  is  performed  by  the  board  of  arbitration 
and  inferior  courts  or  committees,  such  as  the  Trade  Board  in  the 
Hart  Schaffner  &  Marx  system,  and  the  Committee  on  Immediate 
Action  in  the  Suit  and  Cloak  Protocol.  Appeals  may  always  be 
taken  for  final  decision  to  the  board  of  arbitration.  Decisions  are 
based  upon  the  fundamental  agreement,  administrative  orders  which 
have  not  been  challenged,  precedent  decisions,  customs  and  practices 
in  the  industry. 

The  judicial  boards  and  committees  are  composed  of  repre- 
sentatives in  equal  strength  of  employers  and  employees,  presided 
over  by  a  neutral  arbitrator  who  casts  the  decisive  vote.  This 
neutral  arbitrator  has  the  opportunity  to  develop  an  extra-legal 
process  of  mediation  by  which  the  necessity  of  much  litigation  is 
avoided.  It  is  usually  stipulated  that  agreements  reached  by  media- 
tion do  not  create  precedents,  but  apply  only  to  particular  cases  in 
hand.  The  neutral  arbitrator,  if  he  have  the  ability  and  inclina- 
tion, may  in  the  course  of  his  work  by  discussion  and  education 
establish  standards  of  justice  and  fair  dealing  in  the  employer- 
employee  relation  acceptable  to  both  sides.  These  may  form  a  sort 
of  unwritten  constitution  of  great  practical  influence  upon  the  har- 
monious operation  of  the  enterprise.  The  possibility  of  disputes 
and  conflicts  is  greatly  reduced  when  the  parties,  acting  in  good 
faith,  gradually  approach  agreement  in  their  beliefs  as  to  what  is 
right  and  wrong  action. 

Industrial  concerns  which  have  adopted  some  form  of  indus- 
trial government  such  as  here  described  find  it  advantageous  to 
establish  a  department  to  supervise  their  relations  with  their  em- 
ployees and  to  represent  them  in  litigation  and  negotiation.  Posi- 
tions are  thus  created  for  men  who  have  been  trained  in  economics, 
political  science,  law  and  business,  and  who  have  talent  for  negotiat- 
ing, pleading,  instructing  and  social  service  work. 


32  THE  HART  SCHAFFNER  &  MARX 

In  the  five-year  experience  with  the  Hart  Schaffner  &  Marx 
arrangement,  most  of  the  fundamental  issues  which  arise  in  the 
employer-employee  relation  have  been  met  and  adjudicated.  These 
typical  cases  have  revealed  principles  which  may  some  day  help  to 
form  an  established  code  of  governing  rules  for  industry  and  sup- 
planting the  present  method  of  competitive  bargaining  and  con- 
flicts settled  by  economic  strength. 

Opportunity  to  Work. — The  ordinary  concept  of  the  employer 
is  that  labor  is  a  commodity  purchasable  as  other  commodities. 
He  strives  to  get  as  much  as  he  can  as  cheaply  as  possible.  The  job 
or  opportunity  to  work  is  his  private  property  and  the  workman 
has  no  claim  upon  it.  The  new  principle  gives  the  worker  a  right 
to  his  job  which  can  be  defeated  only  by  his  own  misconduct.  The 
job  is  the  source  of  livelihood  to  the  worker  exactly  as  his  capital  is 
the  source  of  livelihood  to  the  capitalist.  In  the  slack  season  what- 
ever work  there  is  shall  be  divided  equally  among  all  as  far  as 
practicable. 

In  cases  of  discharge,  the  burden  of  proof  is  upon  the  employer 
to  show  that  such  discharge  is  necessary  for  the  welfare  of  the 
organization.  He  must  also  show  that  any  alternative  action  in- 
volving less  hardship  on  the  individual  is  inadequate. 

So  long  as  there  is  an  adequate  supply  of  labor  available  in  the 
skilled  trades,  the  employer  must  not  introduce  an  unreasonable 
number  of  apprentices  into  the  trade. 

In  the  hiring  of  new  help,  preference  must  be  given  to  members 
of  the  union  which  is  a  party  to  the  agreement,  provided  such 
members  are  competent  and  of  good  records.  To  maintain  its  prestige 
with  the  people,  the  union  must  be  able  to  keep  all  its  reputable 
members  at  work. 

Discipline. — Disciplinary  penalties  must  never  be  allowed  as 
a  means  of  discouraging  the  organization  of  employees  into  unions. 
The  employees  must  have  leaders,  and  some  of  these,  lacking  experi- 
ence and  information,  sometimes  fail  to  distinguish  between  legitimate 
complaining   and   insubordination.*      Discrimination   on    account   of 


4.  Under  the  protocol,  piece-work  prices  are  determined  by  bar- 
gaining between  the  individual  employee  and  a  shop-committee.  A 
serious  situation  is  created  by  the  suspicion  of  the  workers  that  the 
power  of  discipline  is  used  to  gain  advantage  in  bargaining.  There 
is  no  centralization  and  specialization  of  the  discipline  function  there. 


LABOR  AGREEMENT  33 

union  activity  is  difficult  to  prove  or  disprove  and  is  a  favorite  device 
for  befogging  a  case.  The  difficulty  is  diminished  by  specializing 
the  disciplinary  function  in  one  man  who  is  free  from  suspicion  of 
antagonisrti  to  the  organization  of  employees. 

Managers  who  are  directly  responsible  for  the  efficiency  of  the 
shop  should  not  be  burdened  with  the  responsibilities  of  discipline. 
This  function  is  one  of  great  delicacy.  If  badly  or  unskillfully 
performed  it  is  a  fruitful  source  of  antagonisms  and  personal  feelings, 
which  is  like  sand  in  a  complicated  machine.  If,  however,  it  is 
handled  with  judgment  and  resourcefulness  by  an  official  who  is 
detached  from  an  immediate  interest  in  the  operations  and  who  can 
look  forward  to  ultimate  results,  the  function  presents  great  oppor- 
tunities for  gaining  the  respect  and  good  will  of  the  employees. 
Discipline  cases  afford  the  finest  opportunities  for  educational  work, 
both  .with  worker  and  foreman. 

So  long  as  the  offending  employee  is  to  be  retained  in  the 
factory,  any  disciplinary  penalty  must  be  corrective  and  no  more 
severe  than  is  necessary  to  accomplish  the  best  results  for  all  con- 
cerned. Most  offenders  are  victims  of  wrong  ideals  or  mental 
deficiencies,  the  remedy  for  which  is  not  punishment  but  help  and 
instruction.  Delinquencies  in  management  can  frequently  be  dis- 
covered and  the  manager  or  other  executive  may  need  the  services 
of  the  expert  discipline  officer  quite  as  much  as  the  original  offender. 
The  efficiency  of  the  discipline  officer  should  be  measured  by  the 
proportion  of  ex-offenders  who  have  ultimately  become  competent 
and  loyal  friends  of  the  company.  It  is  his  prime  duty  to  prevent 
and  remove  from  the  minds  of  the  people  all  sense  of  injustice  in 
their  relations  with  the  employer,  which  is  the  fundamental  cause 
of  the  bitterest  industrial  conflicts. 

Management. — ^The  great  defect  in  autocratic  governments  is 
the  lack  of  adequate  and  intelligent  criticism.  Autocratically- 
governed  business  enterprises  suffer  from  the  absence  of  their  whole- 
some check.  Organized  employees  represented  by  spokesmen  who 
are  protected  in  that  function,  together  with  a  labor  department 
responsible  for  the  good  will  and  welfare  of  the  employees,  consti- 
tute a  critical  check  on  bad  management  and  the  source  of  valuable 
suggestion  for  more  efficient  management.  Piece-workers,  especially, 
are  vitally  affected  in  their  earnings  by  the  quality  and  efficiency 


34  THE  HART  SCHAFFNER  &  MARX 

of  the  management.  Subordinate  executives  in  the  factory  may  con- 
ceal this  inefficiency  from  their  superior  officers  for  a  long  time,  but 
a  system  of  free  complaints  makes  this  impossible. 

Standards. — Lack  of  standards  is  probably  the  chief  cause  of 
disorder  and  conflicts,  especially  in  the  needle  industries.  This  in- 
cludes standards  of  workmanship,  piece-work  prices,  conduct  in  the 
shop,  and  all  points  which  involve  the  interest  of  the  employee. 

The  primary  tribunals  or  Trade  Board  should  settle  finally  all 
disputes  as  to  facts;  appeals  should  be  taken  only  when  disputed 
standards  are  involved.  Each  case  before  the  Board  of  Arbitration 
is  an  opportunity  to  establish  one  or  more  standards.  Thus,  unless 
the  industry  is  one  of  great  changes,  the  board  will  find  the  need 
for  its  services  grow  gradually  less  as  both  parties  learn  to  be  gov- 
erned by  standards.  The  immense  value  to  an  industry  of  estab- 
lished standards  should  reconcile  the  parties  to  the  time  consumed 
in  deciding  some  comparatively  unimportant  case  which  happens 
to  afford  opportunity  for  creating  a  standard.  The  board  in  such 
cases  should  get  expert  and  technical  testimony  from  all  sources 
through  witnesses  and  committees  of  investigation,  so  that  the  work 
is  done  once  for  all. 

Unionism. — This  system  of  government  assumes  adequate  rep- 
resentation of  the  employee;  such  representation  requires  organiza- 
tion and  leadership.  There  are  many  advantages  where  the  employer 
is  large  enough  to  be  independent  of  associations  of  employers,  and 
where  the  employees'  organization  is  limited  to  employees  of  the  one 
company.  At  the  outset,  the  workingmen  are  likely  to  belong  to 
national  unions,  and  the  company  to  be  a  member  of  a  trade  associa- 
tion, especially  if  the  experiment  begins  at  the  close  of  an  industrial 
conflict  or  general  strike. 

Many  of  the  traditional  principles  and  practices  of  unionism 
are  developed  out  of  a  state  of  militancy  and  are  not  adapted  to  a 
state  of  peaceful  government,  hence  they  are  obstructive.  Unless 
the  employees  as  well  as  the  employer  agree  that  the  rules  and 
decrees  of  the  Board  of  Arbitration  shall  prevail  over  any  rules  or 
orders  of  either  a  national  union  or  a  trade  association;  that  the 
government  which  they  are  establishing  shall  receive  their  undi- 
vided, unhyphenated  allegian-ce;  the  scheme  will  be  unsound. 

These  difficulties  do  not  exist  when  the  Board  of  Arbitration 


LABOR  AGREEMENT  35 

has  jurisdiction  coextensive  with  the  association  and  union  and  where 
the  entire  membership  of  both  groups  submit  themselves  to  its 
government.  The  combination  of  local  unions  into  great  national 
and  international  federations  was  a  war  measure  and  loses  its 
raison  d'etre  when  a  system  of  representative  government  is  estab- 
lished. 

When  the  organization  of  employees  uses  its  strength  to  pro- 
mote the  reign  of  law  and  order,  the  employer  has  an  interest  in 
helping  to  develop  its  strength.  So  long  as  he  has  faith  in  this  sys- 
tem, he  cannot  then  be  hostile  to  the  organization. 

The  "closed  shop"  issue  which  is  responsible  for  so  much  indus- 
trial warfare  has  been  eliminated  in  some  of  the  needle  industries 
by  the  device  of  the  "preferential  shop."  The  issue  has  its  cause 
in  the  difficulty  of  the  unions  in  maintaining  their  membership  and 
collecting  money  from  members.  The  unions  use  their  power  over 
the  employer  to  force  him  to  maintain  the  strength  of  their  organiza- 
tion by  penalizing  persons  who  are  disinclined  to  submit  to  the  rule 
of  the  union  officials.  The  conscientious  employer  has  moral  scruples 
against  forcing  his  employees  to  be  members  of  a  union  against  their 
will  and  to  submit  to  the  authority  of  union  officials. 

The  preferential  shop  idea  is  a  compromise  by  which  the 
greatest  dangers  and  injustices  of  compulsory  union  membership 
are  avoided  and  yet  by  which  there  is  a  distinct  advantage  to  mem- 
bers of  the  union.  Union  members  have  preference  when  new  people 
are  needed  and,  when  the  force  must  be  reduced,  they  are  retained 
in  preference  to  others. 

Under  this  system  the  danger  of  the  abuse  of  arbitrary  powers 
by  union  officials  as  well  as  by  employers  is  much  reduced.  Both 
must  submit  in  equal  degree  to  the  board  of  arbitration,  and  all 
their  actions  may  be  reviewed  by  that  body.  The  principles  of 
right  action  as  laid  down  by  the  board  govern  them  equally. 

Wages. — We  are  so  habituated  to  the  idea  of  labor  as  a  pur- 
chased commodity  or  service,  that  it  seems  to  us  quite  natural  for 
the  price  of  it  to  be  determined  by  the  law  of  supply  and  demand 
through  the  bargaining  process.  When  employees  are  unorganized, 
they  are  unable  to  bargain  with  a  large  employer  on  anything  like 
equal  terms;  when  they  are  organized,  the  bargaining  may  take  the 
form   of   industrial   warfare.      Bargaining  cannot   be   equitable   and 


36  THE  HART  SCHAFFNER  &  MARX 

fair  unless  either  party  has  the  right  to  withhold  what  he  is  offering 
to  the  other.  This  principle  is  so  true  that  the  courts  and  legisla- 
tures have  been  forced  to  legalize  strikes  and  picketing,  notwith- 
standing the  tendency  of  these  measures  to  subvert  law  and  order 
and  to  jeopardize  the  right  of  person  and  property. 

The  dilemma  is  most  acute  in  public  utilities  where  the  public 
interest  is  peculiarly  affected;  therefore,  every  possible  means  is 
being  tried  to  introduce  government  in  the  form  of  voluntary  arbi- 
tration. Upon  the  success  of  this  method  may  depend  the  future 
necessity  of  using  the  authority  of  the  state  to  establish  and  enforce 
standards  by  compulsion  in  at  least  some  instances. 

Whether  voluntary  government  can  succeed  or  not  will  turn 
largely  upon  the  possibility  of  discovering  principles  of  manifest 
justice  from  which  practicable  standards  may  be  deduced.  The 
great  need  is  therefore  a  principle  applicable  to  wage  controversies. 
Much  depends  upon  a  satisfactory  answer  to  the  sphinx-riddle,  what 
is  a  just  wage? 

In  the  system  here  described,  the  rate  of  wages  and  piece-work 
prices  existing  at  the  beginning  of  the  agreement  was  accepted  as 
the  basis.  Certain  horizontal  advances  were  granted  to  prevail 
during  the  term  of  the  agreement.  At  the  end  of  that  period,  the 
whole  question  is  reopened.  If  both  parties  agree  to  arbitrate  this 
major  question  as  they  do  all  others,  the  burden  is  thrown  upon 
the  Board  of  Arbitration  of  finding  some  governing  principle  from 
which  a  rational  decision  may  be  derived. 

The  student  of  political  science  will  find  in  the  development 
of  voluntary  industrial  government  an  interesting  contribution  to 
his  science.  Just  as  the  common  law  of  England  evolved  from  self- 
imposed  customs  and  regulations  in  the  interest  of  harmonious  dealing 
and  relations,  so  here  we  may  observe  an  organic  growth  of  industrial 
government,  establishing  itself  alongside  the  federal  and  state  juris- 
dictions. Perhaps  this  will  be  the  means  of  escape  from  the  dilemma 
of  domination  by  a  ruling  over  a  subject  class  on  the  one  hand,  and, 
on  the  other,  a  chronic  state  of  civil  warfare  with  the  classes  perpetu- 
ally struggling  for  advantage,  with  small  consideration  for  the  public 
welfare. 


LABOR  AGREEMENT  37 


A  New  Field  for  Systematic 
Justice 

(Editorial  Note  By  Dean  John  Wigmore  of  Northwestern 

University  Law  School  in  Illinois  Law  Reveiw 

for  March,  1916. ) 

Few  laymen,  and  fewer  lawyers,  stop  to  reflect  that  the  system 
of  legal  justice  keeps  changing  slowly,  from  epoch  to  epoch,  in  its 
contents — the  subjects  of  its  rules  and  dispensations.  Mr.  Higgins' 
recent  article  in  the  Harvard  Law  Review  (November,  1915), 
entitled,  "A  New  Field  for  Law  and  Order,"  called  attention  to 
Australia's  Court  of  Conciliation  and  Arbitration  and  its  body  of 
decisions.  But  already,  spontaneously,  in  our  own  country,  work 
in  the  same  field  has  begun. ^  Mr.  Howard's  article  in  the  present 
number  of  the  Illinois  Law  Review  is  the  first  to  set  forth  for 
lawyers  the  good  beginning  already  made.  Lawyers  should  awaken 
to  this  coming  enlargement  of  the  field  of  systematic  justice. 

Look  back  over  six  centuries.  In  the  late  Norman  times  there 
is  great  bulk  of  learning  on  the  courts'  dealings  with  essoins,  mort 
d'ancestor  and  other  obsolete  matters.  Later,  wardships,  homage 
and  primer  seisin  fill  the  year  books.  Then  for  a  while  the  law  of 
treason  absorbs  a  large  place.  Meantime,  notes  and  bills  of  ex- 
change make  their  appearance;  tithe-law  and  copyholds  begin  to 
disappear.  Estates  in  futurity  begin  to  bulk  large,  and  insurance, 
stock  companies,  copyrights  and  trademarks  appear  upon  the  stage. 
Compare  any  digest  of  the  1850s  with  Brooke's  Abridgment  of  the 
1500s;  and  one  can  hardly  recognize  the  two  as  dealing  with  the 
same  country's  law.  Yet  the  machinery  of  justice  has  been  contin- 
uous; it  is  the  grist  that  has  gradually  changed. 

Can  we  imagine  that  the  process  of  change  has  ceased  in  the 


1.  See  also  Julius  Cohen,  "Law  and  Order  in  Industry"  (1915);  Chas.  H. 
Winslow,  "Industrial  Court  of  the  Cloak,  Suit  and  Skirt  Industry  of  New  York 
City"  (Bull.  No.  144,  U.  S.  Labor  Department,  March  18,  1914). 


38  THE  HART  SCHAFFNER  &  MARX 

1800s?  Has  not  the  same  slowly  shifting  panorama  been  going  past 
before  our  eyes,  if  we  would  only  look?  Should  we  not  naturally 
expect  to  find  new  fields  gradually  entering  the  area  of  justiciable 
disputes — especially  in  an  era  of  rapidly  changing  social  and  indus- 
trial conditions? 

What  are  some  of  the  obviously  new  classes  of'  material  ? 

In  the  region  of  family  life,  the  wife's  interests  to  protection 
have  been  furnishing  much  grist;  and  the  child's  interests,  in  juvenile 
court  law.  In  personal  rights,  the  injuries  done  by  machinery  have 
come  to  absorb  nearly  a  third  of  the  time  of  the  courts.  In  property 
law,  the  stockholders  of  a  corporation  now  furnish  the  material  which 
was  formerly  afforded  by  the  tenant  in  capite  and  the  copyholder; 
the  chattel  mortgage  takes  the  place  of  the  old  actions  of  debt. 

And  so,  along  the  margin  of  the  judicial  stage,  in  the  wings, 
we  may  expect  to  see  still  other  material  in  formation,  ready  to  be 
openly  justiciable  by  the  courts. 

The  most  obvious  of  these  is  the  subject  of  railroad  service  to 
the  public.  Nearly  thirty  years  ago  I  made  for  the  Massachusetts 
Railroad  Commission  a  Digest  of  seventy-five  pages,  covering  their 
rulings  of  the  prior  twenty  years;  the  second  edition  by  the  present 
chairman  of  the  board,  has  just  appeared.  Any  one  who  consults  it 
will  see  that  its  material  is  judicially  treated,  after  the  style  of 
legal  justice.  That  is,  general  principles  are  laid  down,  for  deciding 
particular  cases.  E.  g.,  the  inhabitants  of  Smithville  apply  for  a 
second  morning  train  to  Boston ;  the  railroad  argues  that  even  the 
one  train  does  not  pay  for  itself  in  fares;  the  Board  grants  the  appli- 
cation, on  the  ground  that  the  town  does  need  the  train,  and  that 
the  cost  of  running  each  particular  train  is  not  decisive  to  negative 
the  duty  to  furnish  adequate  facilities.  Here  is  the  germ  of  a  gen- 
eral principle ;  which  in  another  case  will  be  qualified  or  extended, 
until  at  last  we  have  a  complete  legal  principle  for  the  decision  of 
a  general  class  of  cases.  All  this  has  since  become  familiar  to  us  in 
the  rulings  of  the  Interstate  Commerce  Commission.  Whether  that 
organ  be  called  a  court  or  not  is  immaterial ;  the  fact  is  that  it  de- 
cides particular  controversies  by  more  or  less  general  principles. 
Thus  a  new  mass  of  material  has  been  brought  into  the  field  of 
systematic  justice. 

The  next  mass  of  material  due  to  arrive  is  that  of  industrial 


LABOR  AGREEMENT  39 

controversies.  Twenty  years  ago  it  seemed  impossible  that  such 
things  should  be  justiciable.  Why?  Because  there  were  no  general 
principles  to  lay  hold  of.  The  judge  of  the  last  hundred  years  feels 
at  home  in  a  copyright  case,  because  he  can  invoke  a  number  of 
principles  with  their  sundry  exceptions.  But  before  Miller  v.  Taylor 
and  Donaldson  v.  Becket,  he  would  have  felt  lost.  "Let  these 
authors  and  publishers  wrangle  it  out  between  themselves;  the  courts 
cannot  help  them ;  that  is  a  question  of  the  ethics  or  economics  of 
their  trade,  about  which  we  know  nothing,"  such  would  have  been 
the  judge's  thought.  Where  everything  is  arbitrary,  how  can  the 
judges  attempt  to  settle  the  dispute? 

Such  has  been  the  helpless  attitude  of  the  courts  towards  in- 
dustrial disputes.  "Freedom  of  contract"  relegated  them  all  to  the 
limbo  of  non-justiciable  controversies. 

But  in  Australia  the  experience  in  private  arbitration  had  gone 
so  far  that  finally  the  subject  was  handed  over  formally  to  a  special 
court,  where  it  now  is.  In  our  own  country,  the  material  is  begin- 
ning to  be  worked  over  by  a  few  private  boards.  This  is  what  Mr. 
Howard's  article  recounts. 

The  significant  thing  is  that  general  principles  are  beginning  to 
be  formulated.  And  the  moment  you  have  general  principles,  used 
for  deciding  particular  cases,  you  have  justice  in  the  form  of  law, 
as  distinguished  from  the  arbitrary  justice  of  a  Turkish  Caliph,  or 
from  private  struggle  decided  by  private  force. 

Gradually,  as  this  system  described  by  Mr.  Howard  is  extended 
in  other  enlightened  industrial  institutions,  and  the  body  of  ex- 
perience with  it  is  enlarged,  the  general  principles  with  their  numer- 
ous qualifications  will  become  clearer  and  more  accepted.  The 
sanction  of  government,  under  one  or  another  name  for  the  court, 
will  be  granted.  The  community  will  approve.  Industrial  contro- 
versy will  become  as  justiciable  as  property  controversy. 

And  a  new  field  will  have  been  gained  for  systematic  justice. 

J.  H.  Wigmore 


40  THE  HART  SCHAFFNER  &  MARX 

Making  Piece-Work  Rates  under 
Hart  SchafFner  &  Marx  Agreement 

By  James  Mullenbach, 
Chairman  Trade  Board 

Responsibility  for  making  piece  rates  is  lodged  primarily  in  the 
Trade  Board.  For  expediency  the  responsibility,  however,  has  been 
turned  over  by  the  Trade  Board  to  a  Committee,  knovi^n  as  the  Rate 
Committee,  and  composed  of  three  members,  one  representing  the 
company,  one  representing  the  people,  and  the  chairman  of  the  Trade 
Board.  As  a  matter  of  practice,  the  w^ork  of  rate  making  is  carried 
on  almost  exclusively  by  the  two  members  representing  the  company 
and  the  people.  While  some  cases  are  brought  before  the  full  com- 
mittee, these  cases  are  exceptional  when  compared  to  the  number 
settled  by  the  two  members. 

The  agreement  provides  that  in  fixing  rates  the  Board  is  re- 
stricted to  the  following  rules:  Changed  prices'  must  correspond  to 
the  changed  work  and  new  prices  must  be  based  on  old  prices  when 
possible. 

Whenever  a  question  of  piece  rate  arises,  it  is  taken  up  in  the  first 
instance  by  the  two  members  of  the  committee  and  an  attempt  is  made 
to  reach  an  agreement.  If  an  agreement  is  reached,  a  specification  of 
the  work  to  be  performed  and  the  rate  to  be  paid  is  prepared  and 
signed  by  both  representatives  without  any  further  action.  If,  how- 
ever, the  two  parties  are  unable  to  reach  an  agreement,  the  case  is 
taken  up  with  the  full  committee  and  an  agreement  reached,  or  a  deci- 
sion made  fixing  the  rate  and  specification.  If  this  decision  is  unsatis- 
factory to  either  party,  the  decision  may  be  appealed  to  the  Board  of 
Arbitration. 

New  rates  are  always  provisional  and  temporary,  and  are  sub- 
ject to  review  after  sufficient  period  of  trial  to  determine  their  merit. 


1.     In  earlier   drafts  of   the  agreement  the  word  "price"  was  used 
in  this  connection. 


LABOR  AGREEMENT  41 

The  Committee  seeks  to  make  the  temporary  rate  as  nearly  equitable 
as  possible,  both  for  its  effect  on  the  people  and  to  save  a  repetition  of 
the  negotiation. 

After  the  specification  and  rate  have  been  authorized  by  the 
Rate  Committee,  there  can  be  no  alteration  of  the  terms  either  by  the 
company  or  the  people  without  permission  from  the  Rate  Committee. 


UNIVERSITY  OF  CALIFORNl 
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